Oil rose on Monday, driven by reports that the OPEC-led supply cut may not only be extended beyond 2017 but will also deepen it to reduce market supplies and raise prices.
As of 0643 GMT, Brent crude futures were up 32 cents, or 0.6 percent, from the previous close of $ 53.93 a barrel.
US West Texas Intermediate crude futures rebounded above $ 50 a barrel and gained 29 cents, or 0.6 percent, to $ 50.62 a barrel.
Both benchmark crude rose more than 10 percent from the May low.
Prices are rising on expectations of an extension of the supply cut agreed between the Organization of Petroleum Exporting Countries (OPEC) and other producers, including Russia, by 1.8 million bpd to March 2018 instead of just the first half of this year.
Sources said the option to deepen production cuts was also under discussion before the OPEC meeting and its allies in Vienna on May 25.
"Oil has risen high ... as rumors spread that OPEC is considering recommending a double strike: extending and deepening the cut ahead of Thursday's meeting," said Geoffrey Halley, an analyst at Uganda Futures brokerage in Singapore.
James Woods, an analyst at Trevkin Securities in Australia, said the deepening of the cut may be necessary to contain the supply gap.
Due to the fact that the supply of OPEC oil has not actually declined since the beginning of 2017 compared to last year when the supply was the most severe.
The US Energy Information Administration (EIA) predicts that "OPEC's net export revenues will rise to $ 539 billion in 2017 compared with 2016" due to the slightly higher crude prices and a slight increase in the organization's production. Finished 29 N 10
SOURCE
As of 0643 GMT, Brent crude futures were up 32 cents, or 0.6 percent, from the previous close of $ 53.93 a barrel.
US West Texas Intermediate crude futures rebounded above $ 50 a barrel and gained 29 cents, or 0.6 percent, to $ 50.62 a barrel.
Both benchmark crude rose more than 10 percent from the May low.
Prices are rising on expectations of an extension of the supply cut agreed between the Organization of Petroleum Exporting Countries (OPEC) and other producers, including Russia, by 1.8 million bpd to March 2018 instead of just the first half of this year.
Sources said the option to deepen production cuts was also under discussion before the OPEC meeting and its allies in Vienna on May 25.
"Oil has risen high ... as rumors spread that OPEC is considering recommending a double strike: extending and deepening the cut ahead of Thursday's meeting," said Geoffrey Halley, an analyst at Uganda Futures brokerage in Singapore.
James Woods, an analyst at Trevkin Securities in Australia, said the deepening of the cut may be necessary to contain the supply gap.
Due to the fact that the supply of OPEC oil has not actually declined since the beginning of 2017 compared to last year when the supply was the most severe.
The US Energy Information Administration (EIA) predicts that "OPEC's net export revenues will rise to $ 539 billion in 2017 compared with 2016" due to the slightly higher crude prices and a slight increase in the organization's production. Finished 29 N 10
SOURCE