Oil gains ahead of weekend OPEC talks
Oil prices gained Friday (June 5) ahead of a weekend meeting of OPEC nations.
International benchmark Brent crude climbed as much as 2%, going back above 40 dollars per barrel.
It’s now up around 14% this week, and on track for a sixth week of gains.
The surge was triggered by output cuts, and signs that demand is picking up as lockdowns ease.
Now OPEC and ally Russia are expected to discuss extending the production cuts on Saturday (June 6).
The meeting of oil ministers will take place by videoconference.
Saudi Arabia and Russia - the world’s top two producers - want to extend production curbs into July.
But analysts say OPEC unity looks in doubt.
Some member states may be reluctant to extend the cuts, or even want to relax compliance with the current deal.
The doubts focus on Iraq.
One analyst told Reuters that traders take the country’s commitment to cuts ‘with a pinch of salt’.
Any failure to reach agreement could see an extra two million barrels per day flow onto markets.
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