Oil jumped to a five-week high after Saudi Arabia and Russia signaled their support for an extension of OPEC+ output cuts and a U.S.-China agreement to restart trade talks improved the demand outlook.
Futures rose as much as 2.8% after rallying more than 11% over the past two weeks. Other OPEC members have indicated their support for the agreement between Russian President Vladimir Putin and Saudi Crown Prince Mohammed Bin Salman to prolong the curbs by six to nine months before their meeting in Vienna this week. Washington and Beijing declared a second truce to their trade war and the U.S. will hold off on imposing additional tariffs on China.
West Texas Intermediate oil for August delivery climbed $1.24 to $59.71 a barrel on the New York Mercantile Exchange as of 10:03 a.m. in Singapore after advancing as much as $1.63 earlier. The contract added 9.3% last month.
Brent for September settlement rose $1.33, or 2.1%, to $66.07 a barrel on the ICE Futures Europe Exchange. The August contract expired Friday,. The benchmark global crude traded at a premium of $6.36 to WTI.
Source : Bloomberg