Oil Extends Gain on OPEC+ Output-Cut Pact and Libya Field Outage - Bloomberg

Oil Extends Gain on OPEC+ Output-Cut Pact and Libya Field Outage - Bloomberg:

Oil in London extended gains near $62 a barrel on prospects for a shrinking glut as the OPEC+ group agreed to curb output and protesters forced Libya’s biggest crude field to close.

Brent futures rose as much as 1.1 percent after jumping 2.7 percent on Friday as producers including Saudi and Russia committed to removing 1.2 million barrels a day of output, more than the market had expected. Skepticism before a producer meeting in Vienna last week had seen money managers boost bets against crude. Meanwhile, Libya’s state oil firm declared force majeure at its largest oil field after members of the Petroleum Facilities Guard shut down pumps leading to tanks.

Crude is paring this year’s losses after the Organization of Petroleum Exporting Countries and its partners defied U.S. President Donald Trump’s call for the producer group to keep taps open. Prices have slid from a four-year high in early October highs after Washington gave temporary exemptions from sanctions to eight nations to continue purchasing Iranian oil, while America exacerbated a global glut by pumping at record levels.