NEW YORK, June 3 — Oil prices gained on Tuesday as market participants bet on extending output cuts by major oil producers, reported Xinhua news agency.
The West Texas Intermediate for July delivery climbed US$1.37 to settle at US$36.81 a barrel on the New York Mercantile Exchange. That was the highest finish for a front-month contract since March 6, according to Dow Jones Market Data.
Global benchmark Brent crude for August delivery rose US$1.25 to close at US$39.57 a barrel on the London ICE Futures Exchange.
The prices were buoyed by reports that the Organisation of the Petroleum Exporting Countries and others including Russia, known as OPEC+, are mulling to extend their current production cuts beyond the end of June, at a meeting expected to be held on Thursday.
OPEC+ agreed in April to slash output by 9.7 million barrels per day for May and June as the Covid-19 pandemic ravaged demand. Those cuts are meant to be eased to 7.7 million barrels a day from July through the end of 2020.
— Bernama
