Oil Extends Two-Year High as Saudis, Russia Back Prolonged Cuts - Bloomberg

Oil Extends Two-Year High as Saudis, Russia Back Prolonged Cuts - Bloomberg:

"Brent crude extended its rally to a two-year high as OPEC and Russia signaled they’ll prolong supply cuts, while instability in Iraq’s Kurdish region persisted.

The global benchmark rose 0.8 percent, and West Texas Intermediate gained 0.5 percent, though both crudes pulled back from Monday’s highs as they moved closer to levels that signal they might be overbought. Supporting the rally was Saudi Arabian Crown Prince Mohammed bin Salman last week backing an extension of production cuts by OPEC beyond March, following similar signals from Russian President Vladimir Putin.

“OPEC is doing a good job of talking up their position. That put a bid in the market coming into today,” Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, said by telephone. The issues in Kurdistan have “not ended yet. There’s still some potential bid from that.”"



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