Brent hits 4-week high as OPEC supply cut looms

Brent prices surged to a four-week high on Monday to resume gains that were temporarily halted on Friday, on strong prospects for OPEC to extend the global supply cut for a new period, especially after recent comments by the Saudi energy minister.

As of 12: 07 GMT, Brent crude rose to $72.50 a barrel from the opening level of $72.29, and hit the highest (since April 26) $73.38 and a low of $72.23.

Brent lost 0.9% on Friday, its first loss in four days, on correction and profit taking.

Over the past week, oil prices rose an average of 1.5% in the first weekly gain in a month on fears of a supply disruption in the Gulf region as geopolitical tensions escalated in the world's largest oil producing area.

Saudi Energy Minister Khalid al-Faleh said on Sunday that there was consensus within the Organization of the Petroleum Exporting Countries (OPEC) and its independent producer allies to extend the global supply cut agreement.

The comments came after a meeting of the Joint Ministerial Committee following up the agreement of the global production cut by OPEC Plus over the weekend in Saudi Arabia.

The global alliance is implementing an agreement to cut production by about 1.2 million bpd which has started from last January and ends next June, with the aim of reducing global stocks and to support prices.

OPEC is due to meet formally next month to discuss the production policy and decide on extending the supply reduction agreement for a new period that could last to the end of this year.