Oil prices spiked by almost 90% in May

A Saudi oil production facility

A Saudi oil production facility

Brent oil rose above $40 a barrel for the first time in nearly three months on signs that OPEC+ producers are close to agreeing on a short extension of their historic deal to cut output.

A further report citing unnamed sources said Russian Federation did not mind moving the meeting to this week and suggested this might mean Moscow would also agree to extending the current production cuts of 9.7 million bpd beyond the end-June expiry.

Both Brent and WTI prices are still down about 40% for the year so far. That would help push Brent toward $40 a barrel, he said.

There is talk, however, that the cuts may be extended by another month or two. But a person familiar with its position said on Tuesday it was advisable to find a compromise. Saudi Arabia favors keeping the curbs - which are set to start easing from July - in place for an extra one to three months, a delegate said.

"We do not believe there will be repeat of the March meltdown", Helima Croft, head of global commodity strategy at RBC, said in a note. That's within the range of Saudi Arabia's call for a one to three-month elongation.

West Texas Intermediate for July delivery rose 0.2% to $35.52 a barrel on the New York Mercantile Exchange as of 10:08 a.m.in Singapore. That would mark the fourth straight weekly decline if confirmed by USA government data due later on Wednesday.

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On Tuesday, OPEC members were still wrangling over when to hold their next meeting.

Russia, which was often a laggard in the past but has stuck to its pledges this time, is also pushing for any extension to be conditional on compliance. Yet performance was marred by Iraq and Nigeria, who executed less than half of their agreed reduction.

Iraq's finance minister and acting oil minister, Ali Allawi, hit back on Twitter, saying the country is committed.

The group is likely to hold an online meeting on June 4 to discuss output policy, after Algeria, which now holds the presidency of OPEC, proposed a meeting planned for June 9-10 be brought forward.

Algeria has proposed that the OPEC+ meeting be brought forward to facilitate oil sales for countries such as Saudi Arabia, Iraq and Kuwait.

According to the original agreement reached earlier this year, OPEC+ was to cut 9.7 million bpd in combined production for two months-May and June-and then ease this to 7.7 million bpd, to stay in effect until the end of the year.

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