Oil Rises As Russia Looks to Support Continued Production Cuts


Brent crude futures fell $1, or 1.6%, to settle at $62.29 a barrel.

Earlier, Russian Finance Minister Anton Siluanov said that the price of oil could drop to $30 a barrel if OPEC and its partners fail to agree on extending the production cuts that now expire at the end of June.

Goldman Sachs said an uncertain macroeconomic outlook and volatile oil production from Iran and others could lead OPEC to roll over supply cuts. The meeting will help decide the fate of crude oil prices.

Falih said he may meet Novak again at the G20 meeting in Japan on June 28-29, "to further calibrate our positions".Despite Russia's wavering on its cuts, both sides said they remain committed to continuing cooperation on managing the oil market.

A rising appetite for risk is also helping to support oil prices, with stock markets in Asia and Europe moving higher and futures pointing to a higher open in NY.

The Organization of the Petroleum Exporting Countries (OPEC) and some non-members, including Russian Federation, known collectively as "OPEC+", have withheld supplies since the start of the year to prop up prices.

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"With the Mexican stalemate averted and no harmful shockwaves from this weekend G-20 meeting. oil could trade favorably as WTI and Brent will continue to track the broader risk environment high", Innes said.

On Monday, the 10th of June 2019, both US and United Kingdom crude extended their winning streak, after rising sharply over 3 percent on last Friday (June 7th) over US-Mexico deal on illegal immigrant issues. U.S. President Donald Trump said he was holding up a trade deal with China.

Oil futures extended their losses after the U.S. Energy Information Administration (EIA) reported domestic crude stockpiles rose unexpectedly for the second week in a row, climbing 2.2 million barrels last week after analysts had forecast a decrease of 481,000 barrels.

While the expectations that producer cartel OPEC and Russian Federation would like to extend supply output cuts in support of low prices.

Slowing demand has also contributed to a slump into negative territory in refining profits for Asian naphtha, an important feedstock for the petroleum industry, to levels not seen in over a decade.