Oil prices jump over $1 ahead of the expiry of the WTI June contract

Oil prices climbed by more than $1 a barrel on Monday to their highest in more than a month, supported by ongoing output cuts and signs of gradual fuel demand recovery as more countries ease curbs imposed to stop the spread of the coronavirus pandemic.

Brent crude was $1,19, or 3.7 percent, a barrel of 0240 GMT at $33.69, after hitting a high since April 13. U.S. West Texas Intermediate crude has risen to $1.26, or 4.3 percent, a barrel of $30.69, since rising to its highest since March 16. The June WTI contract expires on Tuesday, but there was little indication that WTI was repeating the historic plunge below zero seen last month on the eve of the expiry of the May contract amid indications that demand for crude and related fuels is recovering from its nadir.

Output is also dropping as U.S. energy firms for a second consecutive week cut the number of oil and natural gas rigs operating at an all-time low. That helped partly to alleviate worries about the distribution point of the WTI contract in Cushing, Oklahoma, which runs out of capacity.

The Chicago Mercantile Exchange, which hosts WTI futures trading, brokerages and the United States Oil Fund LP, the country's largest oil-focused exchange-traded stock, have all taken steps to minimize open positions ahead of the expiry of the WTI contract.

As in the U.S., optimistic attitude has been improved. Federal Reserve Chairman Jerome Powell later this year issued an positive forecast for economic recovery. The Organization of Petroleum Exporting Countries ( OPEC) and its partners, including Russia, a coalition known as OPEC+, are also raising the oil prices.

Saudi Arabia, the world's biggest exporter, reported last week that it will cut a further 1 million barrels per day in June, while OPEC+ wants to hold current oil cuts past June when the group is next to meet.

Kuwait and Saudi Arabia have agreed to halt the production of oil from the joint Al-Khafji field for a month, starting on June 1, the newspaper Al Rai reported on Saturday.

Oil slides as talks between Saudi Arabia and Russia delayed

Global oil prices dropped after Saudi Arabia and Russia postponed a meeting about an agreement to curb production as the pandemic virus hits demand.

The two countries have been caught up in the last month's oil price battle. Traders are worried that too much oil would be available, placing pressure on markets, with large parts of the world in lockdown. Crude prices surged last week after US President Donald Trump indicated a deal was imminent.

The global Brent crude benchmark dropped 12 percent in Asian trade, while US-traded oil, known as the West Texas Intermediate, dropped by more than 10 percent. Measures to curb the spread of coronavirus in countries around the world, including the US, UK and most of mainland Europe and Asia, have seen a dramatic fall in global energy demand.

At the same time, the month-long oil price war between Saudi Arabia and Russia has brought much more crude to the global market than is required. The price war came after an agreement between the two countries to cut supply, which collapsed last month in response to the drop in demand.

That's forced down rates to levels that have not been seen for nearly two decades as markets wait for a new agreement to be decided. The major oil producing countries were supposed to meet on Monday, but they have now moved the meeting back to Thursday. During the first three months of the year, US oil dropped by two-thirds as it saw its worst quarter on record.

Mr Trump had said that he was expecting both sides to cut supply while Saudi Arabia called for an emergency oil producers conference. The Russian energy minister also said he could re-enter talks with his government.

After the U.S., Russia agreed to talks on oil recovers from 18-year lows

Tuesday after U.S. oil recovered property. President Donald Trump and Russian President Vladimir Putin agreed on talks to balance energy markets, with benchmarks climbing off 18-year lows reached as the coronavirus outbreak slashed global demand for fuel.

Brent crude LCOc1 fell 43 cents, or 1.9 percent, to $23.19 a barrel by 0406 GMT, its lowest finish since November 2002 after finishing Monday at $22.76.U.S. crude Clc1 increased by $1.16, or 5.8 per cent, to $21.26 a barrel, after settling at $20.09, the lowest since February 2002, in the earlier session.

Oil markets faced a double whammy from the coronavirus outbreak, and a price war between Saudi Arabia and Russia after OPEC and other producers failed to agree early March on deeper cuts to support oil prices.

Trump and Putin agreed to have their top energy officials discuss stabilizing the oil markets during a phone call, the Kremlin said on Monday.

Oil prices jump after top Iranian general killed by US

Oil prices jump after top Iranian general killed by US: Analysts warn the move could escalate tensions in the region and affect global oil production.

Oil prices have risen sharply after the killing of a top Iranian general in Iraq.

Analysts warned the action could escalate tensions in the region and affect global oil production.

The price of Brent crude jumped by more than 4% to hit $69.50 a barrel at one point, the highest since mid-September.

It came after General Qasem Soleimani was killed in a US drone strike at Baghdad airport, which the Pentagon described as "defensive action".

The price spike pushed oil stocks on the London stock exchange higher, with BP up 1.5% and Royal Dutch Shell 1.4% higher.

Source: BBC