OPEC+ expected to deepen output cuts to 1.5 million bpd - JPM

Iraq says OPEC & allies may extend oil output curb to 1.6 million bpd

Iraq says OPEC & allies may extend oil output curb to 1.6 million bpd

"Ongoing concerns over the global economy and the US-China trade war continue to weigh on prices but US crude inventories are expected to have declined last week which may lend some support", Phil Flynn, analyst at Price Futures Group in Chicago, said in a note.

Brent futures rose 17 cents, or 0.3 per cent, to $61.09 a barrel by 0516 GMT, after having gained 0.7 per cent on Monday.

West Texas Intermediate for January delivery added 28 cents to $56.24 a barrel on the New York Mercantile Exchange as of 7:40 a.m.in London.

Business a.m learnt that OPEC and its allies are in talks to further increase the existing supply cut of 1.2 million barrels per day (bpd) by 4,000 bpd with an extension till June 2020.

In November, both countries were showing indications for a possible signing of the "phase one" trade deal but on Tuesday, Donald Trump hinted that the deal will have to wait after the presidential election in November 2020 and that brought some chill on investors heart thereby weakening their appetite.

China manufacturing PMI improves in November
Foreign client demand strengthened as the rate of new export order growth accelerated to a six-month high. Progress toward a "phase one" US-China trade agreement may have helped lift sentiment.

However, Iraq's Ghadhban said to the reporters in Baghdad earlier on Sunday (December 1st) that the OEPC members alongside its allies were sketching out a plan to incline further output cut at their scheduled meet in Vienna on December 5th and 6th.

"I have no deadline, no", Trump told reporters in London, where he was due to attend a meeting of North Atlantic Treaty Organisation leaders. "Already large speculative buying in recent weeks and some expectations for a longer/larger cut suggests that an uneventful three-month extension is unlikely to provide much upside to current prices".

Saudi Arabia requires the deeper cuts in order to support oil prices and maintain them within a "comfort level" range of $60-$70 per barrel which is closer to the kingdom's fiscal budget break-even level, Malek told Reuters.

OPEC and its allies, including Russian Federation, are to meet on Thursday and Friday in Austria's capital Vienna to discuss the glut of supply in the global oil market and low oil demand around the world.

While OPEC may cut output, United States producers have been only too happy to meet any market shortfalls, with production setting successive records.

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