Brent jumps to 3-month high after OPEC+ extends output cuts

Brent crude continued to rise as the US market opened on Monday, to extend gains for the third straight day, and hit a 3-month high, thanks to the OPEC-Plus coalition extension of the output cut agreement to the end of July, and China oil imports rising to the all-time highest record.

Brent crude rose more than 2.3% to the highest since March 6 at $43.40 a barrel, after it opened at $42.42, and hit a low of $41.84.

Brent crude futures rose more than 4.9% on Friday, posting their second straight daily gain, after OPEC announced its meeting.

Oil prices have gained about 11% during the past week, the sixth straight weekly gain, within the longest weekly gains streak since March 2019.

These large weekly gains came thanks to global demand hopes after easing the coronavirus-lockdown, the OPEC-Plus output cut agreement, and the US production falling to the lowest level since 2018.

The OPEC-Plus coalition formally agreed on Saturday to extend the duration of the current output cut that accounts for 10% of global supply to the end of July.

The OPEC-Plus coalition started implementing a global production cut by 9.7 million barrels per day in April, and was secluded to continue until June, to balance the market and support the falling prices due to the Covid-19 crisis.

Saudi Arabia, the world's largest oil exporter, decided to raise the price of its crude July futures at the highest pace in 20 years.

China's imports jumped 19.2% in May, hitting the all-time high, as the fuel demand recovered after relaxing the coronavirus restrictions.

According to the data, China imported 11.296 million bpd in May 2020 vs. 9.84 million in April, and vs. 9.47 million barrels in May 2019.