Oil boosted on supply cut extension, drop in US drilling activity
While US jobs data raised concerns that a slowdown was spilling into the US, analysts say China’s crude imports will soak up excess supply
London — Oil prices rose on Monday, lifted by comments from Saudi energy minister Khalid al-Falih that an end to Opec-led supply cuts was unlikely before June and a report showing a fall in US drilling activity. US West Texas Intermediate (WTI) crude oil futures were at $56.50 a barrel at 9.45am GMT, up 43c, or 0.77% from their last close. Brent crude futures were at $66.29 a barrel, up 55c, or 0.84%. Falih told Reuters on Sunday it would be too early to change a production curb pact agreed by Opec and allies including Russia before the group’s meeting in June. “We will see what happens by April, if there is any unforeseen disruption somewhere else, but barring this I think we will just be kicking the can forward,” Falih said. Oil markets have been supported this year by ongoing supply cuts by the group called Opec+, which has pledged to cut 1.2-million barrels a day in crude supply since the start of the year to tighten markets and prop up prices. The group will meet on April 17-18...
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