London — Oil prices rose by 2% on Monday, extending a rally from December’s 18-month lows with support from Opec production cuts and steadying share markets. Oil has gained nearly 12 percent since last Monday, its biggest week-on-week rally in two years. Brent crude was up $1.13 at $58.19 a barrel by 9.40am GMT, rising from December’s slide below $50, its lowest level since July 2017. US crude rose 84c to $48.80 a barrel. “Momentum is coming back into the market from very depressed price levels,” Petromatrix strategist Olivier Jakob said. “We’ve had five consecutive days of price gains already, so what you have today is a continuation of that.” The oil prices are drawing support from an agreed supply cut by Opec, well as some non-member countries such as Russia and Oman. Opec oil supply fell in December by 460,000 barrels a day, to 32.68-million barrels a day, a Reuters survey found last week, led by cuts from top exporter Saudi Arabia. The aim of the production cut is to rein in a ...
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