Boosted by Support for OPEC Extensions

Brent crude, the global benchmark grade traded in London, rose 1.3%, or 69 cents to $53.31.

Parties to an OPEC-led effort to curb production to easy supply strains have come to consensus on an extension of the deal fueled gains in oil prices Friday.

"Iran is now able to sell as much oil as it wants and to any country it deems appropriate,"..."Iran was not only exempt from OPEC's cuts but was also allowed to ramp up production to 3.797 million barrels per day", Oilprice reported in December 2016.

Russian Federation reduced its oil output by 300,000 barrels per day, as stipulated in the Vienna deal signed between OPEC and non-OPEC countries, Russia's Energy Minister Alexander Novak said on May 18.

"People were impatient and thought we'd start drawing 10 million barrels a day since the first week of January", said Amrita Sen, chief oil analyst at Energy Aspects.

Crude oil prices have been in volatile territory for most of the year, swinging between the upper $50 range for Brent to the upper $40 level.

OPEC and other producers are due to discuss an extension during an OPEC meeting on Thursday. An expansion of the cuts at officially settled upon volumes is expected to achieve the objective of merging world inventories to their five-year normal, Kuwait's Oil Minister Issam Almarzooq said on Tuesday in his email.

Brent crude was up 63 United States cents at US$53.14 per barrel at 0813 GMT, after climbing to US$53.20, its highest since April 21.

Traders said news that the campaign to elect President Donald Trump previous year had at least 18 undisclosed contacts with Russians had unsettled investors.

According to OPEC's latest Monthly Oil Market Report for May, Nigeria's output was put at 1.484 million bpd for April, from 1.21 million bpd in March, which was based on direct communication.

"All options are open", one source said.

This made the country's crude oil output to drop from 1.426 million bpd it recorded in February to 1.210 million bpd in March.

If the victor is Ebrahim Raisi, a critic of Iran's nuclear deal with the West, the bank said new sanctions "would then very likely be imposed. which could reduce the oil supply from Iran even in the short term".

Analysts estimate that every dollar that oil prices rise between $45 and $55 a barrel results in an additional 1.2 billion barrels that become economic to produce.

US companies that rely on expensive drilling methods have become more efficient, frustrating OPEC's two-year effort to end a crude glut by pumping at maximum capacity to wash out high-cost producers.



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