Oil Jumps After Russia, Saudis Agree to Extend Production Cuts

(Bloomberg) -- Oil raced higher after Russian President Vladimir Putin struck a deal with Saudi Crown Prince Mohammed Bin Salman at the G-20 meeting to extend output cuts for the rest of this year and potentially into early 2020, while the U.S. and China called a temporary truce in the trade war.

Brent futures were up 1.5%, erasing Friday’s drop of 1.4%. OPEC and its allies will most likely agree to curb production for a further 9 months when they meet in Vienna this week, said Saudi Energy Minister Khalid Al-Falih. Delegates from other major producers gave their conditional support for an extension of the cuts which would go beyond the traditional half-year deals favored by the bloc. Meanwhile, U.S. President Donald Trump said he would hold off indefinitely on further tariffs on Chinese imports to allow more time to negotiate a deal.

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