Oil touches multi-week highs as OPEC signals may extend cuts

Senate Majority Leader Mitch McConnell R-Ky. passes reporters as he and other top congressional leaders head to a classified briefing on Iran after members of both parties asked for more information on the White House's claims of rising threats

Senate Majority Leader Mitch McConnell R-Ky. passes reporters as he and other top congressional leaders head to a classified briefing on Iran after members of both parties asked for more information on the White House's claims of rising threats

"We will definitely be responsive and the market will be supplied", Falih said. "We saw the data from the USA week after week, and they are massive increases, so there is obviously supply abundance". "We have to be cautious", Falih said.

As part of the OPEC+ production cuts between January and June, Russia is taking the lion's share of the non-OPEC cuts and pledged to reduce production by 230,000 bpd from October's post-Soviet record level of 11.421 million bpd, to 11.191 million bpd.

The United Arab Emirates´ energy minister said there was no need to relax an OPEC+ deal to cut output by 1.2 million barrels per day to support prices. The deal was created to stop inventories building up and weakening prices.

"I think the market is taking a breath, waiting to see how inventories respond to refiners in the US returning back from maintenance", said Andy Lipow, president of Lipow Oil Associates in Houston.

He added however, that the market needs to be careful during the second half of 2019 in the event of any "demand shocks".

The comments gave an early boost to oil prices on Monday, but futures pared gains throughout the session.

"The United States, Saudi Arabia and the United Arab Emirates. along with our friends and allies, are committed to ensuring that global oil markets remain adequately supplied", the White House statement said, adding, "We have agreed to take timely action to assure that global demand is met as all Iranian oil is removed from the market".

While he has been tough on Iran, Trump told reporters last week that he sometimes has to "temper" Bolton.

The meeting also comes as the full impact of reinstated U.S. sanctions against Tehran kicks in, slashing the Islamic Republic's crude exports. Investors had been growing nervous that OPEC could look to remove the production limits at its next meeting in June, in light of tightening global supply and elevated prices, ' Jasper Lawler, head of research at London Capital Group, said in a note to investors.

In an interview with Fox News broadcast on Sunday, Trump vowed that he would not let Iran develop nuclear weapons but said he did not want a conflict.

Tensions have risen further this month with Washington announcing more economic measures against Tehran, before deploying a carrier group and B-52 bombers to the Gulf over unspecified alleged Iranian "threats".

Extending the deal is also on the table, and Russian Federation would comply with any agreed output limit in the second half of 2019, Novak said.

Still, exporters fear a rush to raise production to plug the gap left by Iranian exports could backfire by triggering a supply glut.

Saudi Arabia's Sunni Muslim ally the UAE has not blamed anyone for the tanker sabotage operation, pending an investigation.

"It is clear that over the last several weeks Iran has attacked pipelines and ships of other nations and created threat streams against American interests in Iraq", Graham tweeted.