Oil rises as Saudi sees OPEC, Russia restricting supplies for longer

Monday,   10-Jun-2019   09:08 AM (IST)

Oil prices rose on Monday after Saudi Arabia said producer club OPEC and Russia were likely to keep withholding supplies, and in relief as the United States withdrew its threat to impose import tariffs on Mexico, removing one cloud over the global economy. Front-month Brent crude futures, the international benchmark for oil prices, were at $63.52 at 0310 GMT, 23 cents, or 0.4%, above Friday's close. U.S. West Texas Intermediate (WTI) crude futures were at $54.29 per barrel, 30 cents, or 0.6%, 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. 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. Stephen Innes, managing partner at Vanguard Markets, said stronger stock markets also supported oil futures. Stock markets rose on Monday after a deal between the United States and Mexico to combat illegal migration from Central America late last week removed the threat of U.S. tariffs on goods imported from Mexico. But analysts said there were still concerns about the health of the global economy, with the United States and China still locked in a trade war. Oil major BP is to publish its statistical review of global energy markets on Tuesday, while China on Friday is scheduled to publish its monthly commodities output data.