The crude oil prices in the u.s. surged Monday morning in the trade, while Russia has confirmed that OPEC and its allies to extend their agreement to reduce the production of nine months, while a truce in the trade dispute between the United States and China helped to allay fears of a slowdown in the global economy.
Futures contracts, West Texas Intermediate crude traded in New York jumped$ 1.75, or 3.0%, to $ 60,22$ / barrel at 13h55, while the futures contracts of crude Brent, the benchmark for oil prices outside of the United States have jumped$ 1.84, or 2.8%, to 66,58$.
“The decision to extend the agreement, as well as the constructive discussions between the presidents Trump and Xi at the G20 summit, according to which the United States would not impose new tariffs, have proved to be constructive for the oil market this morning,” said analysts at ING in a press release.
The Russian minister of Energy Alexander Novak, confirmed Monday that all members of the agreement between the OPEC and allies that are not members, known as OPEC +, had unanimously agreed to extend the reductions in the existing production of 1.2 million barrels per day for nine months.
Novak said that “the whole world supported the general proposal” and that the follow-up Committee of the joint ministerial, which oversees the fulfilment of the agreement, ” specifically recommended this option for enhanced cooperation “, according to a Reuters report.
This announcement comes after the approval of Iran this weekend and the meeting of the saudi leaders and Russian in the margins of the G20 summit.
OPEC has tentatively scheduled a press conference after the meeting of its members at 16: 00.
The ministerial meeting plenary session of the OPEC + is scheduled for Tuesday.
And also to support the price of oil, the United States and China have decided to resume trade negotiations after u.s. president Donald Trump has promised to suspend the implementation of new rates and ease the restrictions on technology company Huawei in order to reduce tensions with Beijing.
Meanwhile, China has agreed to make new purchases of non specified agricultural products of the United States and return to the negotiating table.
The pause in the escalation of trade tensions mitigates fears that the dispute between the two countries has a negative impact on the global economy and oil demand.
In other energy commodities, the futures contracts on gasoline increased 2.2%, to 1,99375 dollar a gallon, at 14: 00, while the oil has gained 2.1% to 1,9803 dollar a gallon.
Finally, the futures of natural gas decreased 1.7%, to settle at 2,2864 USD per million british thermal units.