OPEC set to extend oil supply cut as Iran endorses pact
Stephen Schork on oil prices: Back to a very attractive level for US producers
The Schork Report Publisher Stephen Schork on the outlook for oil and gas prices.
A meeting of OPEC ministers is underway in Vienna with the cartel considering a six- to nine-month extension of its current deal to cut production.
The group is facing a weaker demand outlook due to slowing global growth.
Monday morning, U.S. crude futures were at $60.07, up 2.7 percent.
The head of Nigeria's delegation, Folasade Yemi-Esan, said Monday that her country “strongly endorsed” an extension of the deal for nine months, saying that would “offer greater certainty to the market.”
The current deal reduced production by 1.2 million barrels per day starting from Jan. 1.
Tensions between the U.S. and Iran and attacks on tankers near the Strait of Hormuz have sent oil prices higher in recent days.
Over the longer term, demand could weaken according to the International Energy Agency, which cut its demand estimate earlier this month.
The Associated Press contributed to this article.