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Oil rises on hopes of extended OPEC production cuts

Published 09/10/2019, 09:32 AM
Updated 09/10/2019, 09:40 AM
Oil rises on hopes of extended OPEC production cuts
LCO
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CL
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TOKYO, Sept 10 (Reuters) - Oil futures rose on Tuesday,
potentially heading for a fifth day of gains, amid optimism that
OPEC and other countries may agree to extend production cuts in
a bid to support prices.
Brent LCOc1 was up 42 cents, or 0.7%, at $63.01 a barrel
by 0104 GMT, while U.S. crude CLc1 was 46 cents, or 0.8%,
higher at $58.31 a barrel.
U.S. oil gained more than 2% on Monday, while Brent finished
the day 1.7% higher as the market reacted to the appointment by
Saudi Arabia's king of his son, Prince Abdulaziz bin Salman, as
energy minister on Sunday. Prince Abdulaziz, a long-time member of the Saudi delegation
to the Organization of the Petroleum Exporting Countries (OPEC),
said the pillars of Saudi Arabia's policy would not change and a
global deal to cut oil production by 1.2 million barrels per day
would be maintained. He added that the so-called OPEC+ alliance between the OPEC
and non-member countries including Russia would be in place for
the long term.
A meeting of OPEC and OPEC+ countries this week in Abu Dhabi
this week "is stirring up hopes for additional supply cuts,"
said Stephen Innes, Asia Pacific market strategist at
AxiTrader.
Still, Russia's oil output in August exceeded its quota
under the OPEC+ agreements. Should oil end Tuesday higher it will be the longest run of
gains since late July but headwinds remain as the U.S.-China
trade war rumbles on.
Executives at the annual Asia Pacific Petroleum Conference
said on Monday they expect oil prices this year to be pressured
by uncertainties surrounding the global economy, the U.S.-China
trade war and increasing U.S. supplies.

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