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Oil prices rise on likelihood of ongoing OPEC+ supply cuts

Published 06/10/2019, 08:33 AM
Updated 06/10/2019, 08:40 AM
Oil prices rise on likelihood of ongoing OPEC+ supply cuts
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* Saudi Arabia says ongoing supply cuts likely
* Stocks rally after U.S.-Mexico border deal avoids trade
war

By Henning Gloystein
SINGAPORE, June 10 (Reuters) - Oil prices rose on Monday
after Saudi Arabia said producer club OPEC and Russia were
likely to keep withholding supplies, and in relief that the
United States and Mexico averted a trade war that would have
damaged the global economy.
Front-month Brent crude futures LCOc1 , the international
benchmark for oil prices, were at $63.71 at 0017 GMT, 42 cents,
or 0.7%, above Friday's close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
at $54.43 per barrel, 44 cents, or 0.8%, above their last
settlement.
Traders said crude prices were rising because of statements
by OPEC's de-facto leader Saudi Arabia on Friday saying that the
group was close to agreeing extended supply cuts. "With a production cut extension now sounding more likely
than not, it should be incredibly supportive for oil prices,"
said Stephen Innes, Managing Partner at Vanguard Markets.
The Organization of the Petroleum Exporting Countries (OPEC)
and some non-members, including Russia, known collectively as
OPEC+, have withheld supplies since the start of the year to
prop up prices.
"Also with the Mexican stalemate averted and no harmful
shockwaves from this weekend G-20 meeting, risk assets should
open with a bounce in their step and oil could trade favourably
as WTI and Brent will continue to track the broader risk
environment high," Innes said.
Stock markets jumped on Monday after a deal between the
United States and Mexico to combat illegal migration from
Central America late last week averted a tariff war between the
neighbours.

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