Oil climbs over 2% after OPEC+ extends output cuts to end-July

* OPEC+ extends record oil production cuts to end-July
* Saudi raises July crude prices sharply
* U.S. products shut 30% offshore oil output amid storm
* OPEC+ cuts for May and June: https://tmsnrt.rs/2SsCSMN

By Florence Tan
SINGAPORE, June 8 (Reuters) - Oil prices rose more than 2%
early on Monday to their highest in three months after OPEC and
its allies including Russia agreed to extend record oil
production cuts until the end of July.
Brent crude LCOc1 climbed to as high as $43.41 a barrel
and was trading at $43.32 by 0000 GMT, up $1.02, or 2.4%. U.S.
West Texas Intermediate (WTI) crude CLc1 gained 83 cents, or
2.1%, to $40.38 a barrel. Both hit their highest since March 6.
Brent has nearly doubled since the start of April, propped
up by an unprecedented production cut of 9.7 million barrels per
day by the Organization of the Petroleum Exporting Countries
(OPEC), Russia and allies.
The OPEC+ group prolonged on Saturday the deal to withdraw
almost 10% of global supplies from the market by a third month
to end-July. Following the deal, world's top exporter Saudi Arabia
sharply raised its monthly crude prices for July. Still, compliance to the agreement among OPEC members such
as Iraq and Nigeria remains an issue.
"While the errant producers such as Iraq and Nigeria have
vowed to reach 100% conformity and compensate for prior
underperformance, we still think they will likely continue to
have some commitment issues over the course of the summer,"
Helima Croft, head of global commodity strategy at RBC Capital
Markets, said.
"The potential return of Libyan output could also cause
considerable challenges for the OPEC leadership."
In southwestern Libya, two major oilfields have reopened
after months of a blockade that shut off most of the country's
production. Even as oil prices recovered, they are still well below the
costs of most U.S. shale producers, leading to shutdowns,
layoffs and cost cutting in the world's largest producer.
The number of operating U.S. oil and natural gas rigs fell
to a record low for a fifth week in a row in the week to June 5,
according to data from Baker Hughes Co BKR.N . Nearly 30% of U.S. offshore oil output was also shut on
Friday as tropical storm Cristobal entered the Gulf of Mexico.