U.S. Crude Jumps As Big Producers Set For Doha Meet
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LONDON (Reuters) – Oil rose on Monday, extending a rally triggered last week by speculation that OPEC might agree to cut production to reduce a supply glut that has pushed prices to the lowest in over a decade.
Brent crude futures , the global benchmark, were up 21 cents at $33.57 a barrel at 1428 GMT. U.S. futures traded at $29.68 a barrel, up 24 cents on Friday’s close. Trade is likely to be thinner than usual on Monday due to the U.S. Presidents Day holiday.
Non-OPEC member Russia said on Monday it was in talks on coordinated output cuts with individual OPEC members, mainly Venezuela, but not with the organisation itself, news agency Interfax quoted Russia‘s representative to OPEC as saying.
“The fact that the market has reacted so strongly certainly indicates that these comments are being taken seriously,” analysts at Frankfurt-based Commerzbank wrote.
“We continue to believe that if prices were to be artificially supported with production cuts it would only give more expensive forms of production more room to breathe and would only solve the problem in the short term,” Phillip Futures said in a note.