Oil futures gained on Monday, with U.S. prices climbing back to their highest finish since November, as OPEC and its allies looked set to continue their crude production cuts until June.
At a meeting on Monday, the Joint Ministerial Monitoring Committee, a production policy monitoring group that includes Saudi Arabia and Russia, said that “overall conformity” with the production cut agreement among the Organization of the Petroleum Exporting Countries and some nonmember allies that began at the start of the year rose to almost 90% in February, up from 83% in January.
OPEC members had agreed to trim 800,000 barrels a day from October’s production levels for six months through June of this year, with Russia and other allied producers cutting another 400,000 barrels a day to total 1.2 million barrels in cuts.
On Monday, April West Texas Intermediate crude added 57 cents, or 1%, to settle at $59.09 a barrel on the New York Mercantile Exchange — the highest finish since Nov. 12, according to Dow Jones Market Data. WTI tallied a weekly gain of about 4.4% based on the most-active contracts last week.
May Brent crude added 38 cents, or 0.6%, to $67.54 a barrel on ICE Futures Europe. The contract rose 2.2% for last week.
Source : Market Watch