Brent crude continues rise after topping $60 per barrel on OPEC extension hopes

Global oil markets have extended the momentum which saw prices for Brent crude rise above US$60 per barrel last week, their highest level in over two years dating back to June 2015.

Benchmark Brent crude futures opened at $60.73 per barrel on Monday, a rise of 29 cents (0.48%) above their last settlement, driven by growing expectations of an extension to an OPEC-led production cut deal.

OPEC, Russia and nine other international oil producers have agreed to produce no more than 1.8 million barrels per day (bdp) until March 2018, however comments from Saudi Arabia’s Crown Prince suggest this agreement could be extended.

“The Kingdom affirms its readiness to extend the production cut agreement, which proved its feasibility by rebalancing supply and demand,” said Crown Prince Mohammed bin Salman.

“We will support anything to stabilise the oil demand and supply. I think now the oil market has swallowed the shale oil supply, now we are regaining things again.”

US West Texas Intermediate (WTI) crude stocks were also up 16 cents (0.3%) at $54.06 a barrel. OPEC is scheduled to meet on November 30 in Vienna to discuss the possibility of extending the cuts.