Pumpjacks are seen against the setting sun at the Daqing oil field in Heilongjiang province, China December 7, 2018. Picture taken December 7, 2018. REUTERS/Stringer
SINGAPORE (Reuters) – Oil prices rose more than $1 a barrel on Monday after Russia agreed with Saudi Arabia to extend supply cuts for another six to nine months ahead of an OPEC meeting this week.
Front-month Brent crude futures for September touched an intraday high of $66.14 a barrel and were up 89 cents, or 1.4%, at $65.63 a barrel by 1117 GMT.
U.S. crude futures for August rose 88 cents, or 1.5%, to $59.35 a barrel after earlier hitting a peak of $60.10, the highest in over five weeks.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, an alliance known as OPEC+, meet on July 1-2 to discuss supply cuts, which have been curbing oil output by 1.2 million barrels per day (bpd).
Russian President Vladimir Putin said on Sunday the deal would be extended in its current form and with the same volumes.
Saudi Energy Minister Khalid al-Falih said on Sunday that the deal would most likely be extended by nine months and no deeper reductions were needed.
“While this needs to be ratified by the remaining members of the OPEC+ group, this appears to be a fait accompli,” ANZ analysts said in a note.
Oil prices have come under renewed pressure in recent months from rising U.S. supplies and a slowing global economy.
U.S. crude oil output in April rose to a fresh monthly record of 12.16 million bpd, the U.S. Energy Information Administration said in a monthly report on Friday.
Reporting by Florence Tan; editing by Richard Pullin