Oil rose in New York after Saudi Arabia’s energy minister said OPEC probably won’t need to extend its supply cuts beyond June as the market reaches a balance.
Futures rose 0.5 percent in New York after losing 3 percent last week. Rigs targeting crude in the U.S. fell for the first time in 11 weeks, according to data from Baker Hughes Inc. OPEC’s six-month term for supply cuts will likely suffice to balance the market given the level of compliance with the reductions and the outlook for an increase in global consumption, Saudi Minister of Energy and Industry Khalid Al-Falih said
“They are hopeful that the market will be balanced in the first six months but if it’s not, they’re still willing to consider extending the cuts,” Craig Bethune, a fund manager at Manulife Asset Management Ltd. in Toronto who focuses on energy and natural resources investments, said by phone. “They’re keeping their options open.”
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