By Florence Tan
SINGAPORE (Reuters) – Oil prices rose more than $ 1 a barrel Monday after Saudi Arabia, Russia, Iraq supported an expansion of supply cut in another Six to nine months before an OPEC meeting this week.
The September first-quarter period affected an intraday high of $ 66.1
The Petroleum Exporting Organization (OPEC) and its Allies appear to expand oil supply cuts until the end of 2019 as top Sunday producers, backing a crude oil policy.
OPEC, Russia and other manufacturers, an alliance known as OPEC +, meet July 1-2 for discussing supply cuts. The group has reduced oil production since 2017 to prevent prices from slipping among a weakening global economy and strong US production.
On Sunday, Russian President Vladimir Putin said he had agreed with Saudi Arabia to extend existing cuts of 1.2 million barrels per day (bpd) by six to nine months.
Saudi Energy Minister Khalid al-Falih said that the agreement is likely to be extended by nine months, and no deeper reductions were needed.
"While this has to be ratified by remaining members of the OPEC + group, this seems to be a mistake, ANZ analysts say in a note.
Oil prices have been renewed pressure in recent months from rising US supplies and a slower global economy
US crude oil production in April rose to a new monthly record of 12.16 million bpd, US Energy Information Administration said in a monthly report on Friday
The financial market was raised by a thawing of US-China relations after the leaders of the two worlds The largest economies agreed Saturday to start trade negotiations.
Nevertheless, analysts are still skeptical that both parties can reach an agreement soon.
"Until more details arrive, we are back in the square "Alfonso Esparza, a senior market analyst at Oanda in Toronto, said in a note.
" The road ahead looks complicated as China demands more equal treatment, and the United States Cows Through Intellectual Property Protection. "
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