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Benchmark Brent crude <LCOc1> rose 2.5%, or 97 cents, to $39.29
a barrel as of 1100 GMT.
U.S. West Texas Intermediate (WTI) crude <CLc1> also climbed
2.5%, or 88 cents, to $36.32 a barrel.
Brent has doubled in the past six weeks helped by supply cuts by
the Organization of the Petroleum Exporting Countries and others
including Russia, a grouping known as OPEC+.
But oil prices are still 40% down this year.
OPEC+ producers are considering extending their production cuts
of 9.7 million barrels per day (bpd), equivalent to about 10% of
global production, into July or August, at an online meeting
expected to be held on June 4.
"Most likely, OPEC+ could extend current cuts until Sept. 1,
with a meeting set before then to decide on next steps," said
Citi's head of commodities research Edward Morse.
Under the original OPEC+ plan, the cuts were due to run through
May and June, scaling back to a reduction of 7.7 million bpd
from July to December.
Saudi Arabia has been pushing to keep the deeper cuts in place
for longer, sources said.
"An agreement to extend would buy the OPEC+ group some time to
actually fully comply with the initial supply cut of 9.7 million
bpd before decreasing output curtailment to 7.7 million bpd for
the balance of the year," BNP Paribas Global Head of Commodity
Markets Strategy Harry Tchilinguirian told the Reuters Global
Oil Forum.
Price gains have been capped by trade tension between China and
the United States over Beijing's security legislation in Hong
Kong, as well as manufacturing data on Monday showing the
world's factories were still struggling. [MKTS/GLOB]
(Additional reporting by Shu Zhang and Sonali Paul; editing by
Richard Pullin and Jason Neely)
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