Oil price up on hopes of Opec deal

Late previous year, the Organization of the Petroleum Exporting Countries and non-OPEC members reached a deal to cut production by 1.8 million barrels a day for six months, staring from January 2017.

Futures climbed as much as 1.5 percent in NY after advancing 5.2 percent last week.

On Monday, oil prices rose for a fourth straight session, with both U.S. oil and Brent crude surging over six percent in the past four sessions, as Saudi Arabia and Russian Federation said crude supply cut deal needed to be extended into 2018.

Brent futures were trading 0.6 percent higher at $53.92 a barrel on Monday at 1638 GMT.

The Saudi minister told a joint news conference with his Iraqi counterpart Jabar Ali al-Luaibi that Iraq had given the "green light" to a proposal for a nine-month extension that would be presented to the meeting in the Austrian capital.

VIENNA/NEW DELHI May 22 India said on Monday OPEC production cuts and the prospect of more expensive oil were pushing the world's third biggest consumer to consider US and Canadian suppliers, as well as encouraging it to turn to renewable energy resources.

Brent crude rose by 50 cents to $54.11 a barrel, while the U.S. light crude also traded 50 cents higher than its last close at $50.83, reported Reuters. The more-active July contract advanced 46 cents to $51.13.

Oil prices swung from one-month highs to session lows in volatile trading on Monday as investors awaited a signal on output policy from OPEC's two biggest producers. The global benchmark crude traded at a $2.85 premium to June WTI.

Iraq committed to reduce daily production by 210,000 barrels to 4.351 million barrels.

Iraq's Oil Minister Jabbar Al-Luaibi said nearly all countries participating in the cut had agreed to extend it, though there was no consensus yet on how long the extension should be. "Some ministers say nine months, some ministers think six months", al-Luaibi said on Sunday.

Russian Federation has kept its top spot as oil supplier to China, beating Saudi Arabia for the second month in row, as independent refiners scooped up more volumes before their first batch of quotas expire.

Most of that growth comes from the Permian Basin, but even rapid growth there of about 1 million barrels a day by the end of 2018 leaves a supply gap, analysts at Raymond James Financial Inc. said in a note Monday.

  • Zachary Reyes