Reuters: Oil prices extend gains on OPEC+ cuts, record China imports
Oil climbed on Monday after major producers agreed to extend a deal on record output cuts to the end of July and as China's crude imports hit an all-time high in May.
Brent crude LCOc1 was up 89 cents, or 2.1%, at $43.19 per barrel, by 0500 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 rose 62 cents, or 1.6%, to $40.17 a barrel, as reported by Reuters.
Both hit their highest since March 6 earlier in the session, at $43.41 and $40.44, respectively.
Brent has nearly doubled since the Organization of the Petroleum Exporting Countries (OPEC), Russia and allies – collectively known as OPEC+ – agreed in April to cut supply by 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis.
On Saturday, OPEC+ agreed to extend the deal to withdraw almost 10% of global supplies from the market by a third month to end-July. Following the extension, top exporter Saudi Arabia hiked its monthly crude prices for July.
Low prices have drawn Chinese buyers to boost imports. Purchases by the world's largest crude importer rose to an all-time high of 11.3 million bpd in May.