Mubasher: Brent crude oil maintained its price above $60 per barrel on Monday, near its highest level since mid-2015.
Reuters has reported that oil gains are supported by the expectations that the production cut agreement would be extended beyond March, although rising Iraqi exports put a lid on prices.
It is worth noting that many members of the Organization of the Petroleum Exporting Countries (OPEC), and other major non-OPEC producers especially Russia voiced their support of prolonging the output curb.
Earlier on Monday Brent crude futures were trading near their highest level since July 2015, showing an increase of 36% compared to the low prices recorded in June.
Similarly, West Texas Intermediate (WTI) crude futures were near an eight-month high.
OPEC along with Russia and other major non-OPEC producers agreed to cut output by around 1.8 million barrels per day from 1 January 2017 until March 2018.
An OPEC summit will be held in Vienna on 30 November to decide on the output policy, and OPEC officials have said the supply-cutting pact is likely to be extended beyond March.
OPEC Secretary General Mohammad Barkindo said that Saudi and Russian backing for an extension cleared the fog before the meeting in Vienna.
Today, the UAE minister of energy, Suhail Al Mazroui said that oil markets need an extension of the OPEC production cut agreement after March 2018.
Compliance with the agreed production cuts reached 120% in September.
