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Oil prices rise more than 1 pct after Russia agrees to extend OPEC+ deal

Published 07/01/2019, 07:38 AM
Updated 07/01/2019, 07:40 AM
Oil prices rise more than 1 pct after Russia agrees to extend OPEC+ deal
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* Russia agrees to extend OPEC+ deal at same volumes
* Falih says deal likely to be extended by 9 months
* Falih says no additional cuts required

By Florence Tan
SINGAPORE, July 1 (Reuters) - Oil prices rose more than $1 a
barrel on Monday after Russia agreed with Saudi Arabia to extend
supply cuts for another six to nine months ahead of an OPEC
meeting this week.
Front-month Brent crude futures LCoc1 for September
touched an intraday high of $66.14 a barrel and were up 89
cents, or 1.4%, at $65.63 a barrel by 1117 GMT.
U.S. crude futures for August CLc1 rose 88 cents, or 1.5%,
to $59.35 a barrel after earlier hitting a peak of $60.10, the
highest in over five weeks.
The Organization of the Petroleum Exporting Countries
(OPEC), Russia and other producers, an alliance known as OPEC+,
meet on July 1-2 to discuss supply cuts, which have been curbing
oil output by 1.2 million barrels per day (bpd).
Russian President Vladimir Putin said on Sunday the deal
would be extended in its current form and with the same volumes.
Saudi Energy Minister Khalid al-Falih said on Sunday that
the deal would most likely be extended by nine months and no
deeper reductions were needed.
"While this needs to be ratified by the remaining members of
the OPEC+ group, this appears to be a fait accompli," ANZ
analysts said in a note.
Oil prices have come under renewed pressure in recent months
from rising U.S. supplies and a slowing global economy.
U.S. crude oil output in April rose to a fresh monthly
record of 12.16 million bpd, the U.S. Energy Information
Administration said in a monthly report on Friday.

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