Brent oil up past US$40 for first time in 3 months

Improved market: A worker helps dock an oil tanker at Port Everglades in Florida. The easing of lockdown restrictions in some parts of the world ahead of infection rates peaking meant the demand recovery could be faster than previously anticipated. — AFP

NEW YORK: Brent oil rose above US$40 a barrel for the first time in almost three months on signs that Opec+ producers are close to agreeing on a short extension of their historic deal to cut output.

Futures in London climbed around 2% after closing at their highest level since March 6, the day the Opec+ alliance broke down. Russia and several other nations in the group favour extending the production cuts that are set to ease from July by one month, according to people familiar with the situation. That’s within the range of Saudi Arabia’s call for a one to three-month elongation.