Oil extended gains above $54 a barrel as U.S. drilling activity fell to the lowest since February of last year and Saudi Arabia’s top energy official said he was sure that OPEC+ will extend production cuts.
Futures rose as much as 1.6% in New York, after jumping 2.7% Friday. Working American rigs dropped by 11 to 789 last week, according to data released by Baker Hughes. Saudi Arabian Energy Minister Khalid Al-Falih said he was sure OPEC and its allies will extend output reductions into the second half of the year, and his Russian counterpart said the two countries agreed to take coordinated action.
Iraq will begin export as much as 10,000 barrels a day of Kirkuk crude from the country’s northern region to Jordan’s Zarqa refinery by the end of June or July, Alaa Al-Yasiri, acting director-general of state-run Oil Marketing Co., said in phone interview.
West Texas Intermediate futures for July rose as much as 85 cents to $54.84 a barrel on the New York Mercantile Exchange before trading at $54.54 as of 8:11 a.m. in Seoul. Contract added $1.40 on Friday to settle at $53.99.
Brent for August settlement gained 0.9%, or 55 cents, to $63.84 a barrel on London’s ICE Futures Europe Exchange.
Source : Bloomberg