Oil Rises as Saudi’s Hint at Output Cut Extension

Oil prices rose on Monday as Saudi Arabia’s energy minister said an OPEC-led production cut scheduled to end in June would likely be extended to cover all of the year, or even into 2018, although another increase in U.S. drilling capped gains.

Brent crude futures LCOc1 were at $49.48 per barrel at 0652 GMT, up 38 cents, or 0.75 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $46.52 per barrel, up 30 cents, or 0.7 percent.

“Oil may have seen the worst of the selloff for now, as the market turns its attention to the OPEC meeting at the end of the month,” said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.

Reuters

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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam