Oil costs ascended on Monday after Saudi Arabia said producer club OPEC and Russia were likely to keep withholding supplies, and in relief that the United States and Mexico averted a trade war that would have damaged the global economy.
Front-month Brent unrefined fates, the global benchmark at oil costs, were at $63.71 at 0017 GMT, 42 pennies, or 0.7%, over Friday’s nearby.
U.S. West Texas Intermediate (WTI) unrefined fates were at $54.43 per barrel, 44 pennies, or 0.8%, over their last settlement.
Dealers 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.
“With a production cut extension now sounding more likely than not, it should be incredibly supportive for oil prices,” said Stephen Innes, Managing Partner at Vanguard Markets.
The Organization of the Petroleum Exporting Countries (OPEC) and some non-individuals, including Russia, referred to aggregately as OPEC+, have retained supplies since the beginning of the year to prop up costs.
“Also with the Mexican stalemate averted and no harmful shockwaves from this weekend G-20 meeting, risk assets should open with a bounce in their step and oil could trade favorably as WTI and Brent will continue to track the broader risk environment high,” Innes said.
Financial exchanges hopped on Monday after an arrangement between the United States and Mexico to battle unlawful movement from Central America before the end of last week deflected a levy war between the neighbors.