Oil rallies, Brent hits 3-month high as OPEC+ agrees on meeting

Oil prices rose on Friday, to extend gains for the second day, hitting 3-month highs, on growing hopes that the OPEC-Plus coalition will extend its output agreement, after resolving the current issues regarding the commitment of some producers to their full shares of the agreement, and agreeing to hold an extraordinary video conference meeting tomorrow.

The US crude rose 2.2% to $38.08 a barrel, after it opened at $37.27, and hit an intraday high of $37.07, and Brent crude rose more than 2.9% to $40.95 a barrel, after it opened at $39.82, and hit a high of $39.74.

The US crude gained 1.5%, and Brent crude futures rose more than 1.1% yesterday, posting the fifth daily gain in 6 days, after the US production fell to the lowest level since 2018..

The Russian Energy Ministry confirmed today that a video conference between the major global oil producers, known as the OPEC-Plus, will be held on Saturday.

Reuters quoted a source in OPEC that the organisation will first meet at 12:00 GMT on Saturday, and the OPEC-Plus collation will meeting via video conference at 14:00 GMT.

The meeting that was previously scheduled for yesterday got postponed, after Saudi Arabia and Russia insisted on the approval of the member states that didn't commit to their shares from the current output cut.

Sources in OPEC-Plus said that Saudi Arabia and Russia has agreed in principle to extend the production cuts for one month until the end of July, after most of the OPEC Plus coalition member agreed too.

Should the collation agree on extending the cut, the global production cut by 9.7 million barrels per day will continue until June, which will help the global market to balance.