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Oil holds gains on potential supply cut extension

Investing.com - Oil held its gains on Tuesday as Saudi Arabia is reportedly pushing for extended supply cut plans, even as stocks fell across Asia following the announcement of fresh tariffs by US President Donald Trump.

Crude Oil WTI Futures went up by 0.36%, trading at $56.16 a barrel by 10:44 PM ET (03:44 GMT) after the 1.4% gain on Monday.

Brent Oil Futures rose 0.26%, to $61.08 a barrel, after going up by 0.7% on Monday.

Reuters quoted two sources familiar with the matter that the Organization of the Petroleum Exporting Countries (OPEC) and its allies are discussing a plan to increase the existing 1.2 million barrels per day (bpd) supply cut by 400,000 bpd and extend it until June.

The sources also said Saudi Arabia, the de facto leader of OPEC, is pushing the plan ahead of the listing of state-owned Saudi Aramco.

The market is paying close attention to the OPEC meetings this week where the ministers will meet in Vienna this Thursday and the wider OPEC+ group will gather on Friday.

The Chinese government will soon publish a list of “unreliable entities” that could lead to sanctions against U.S. companies, according to the country’s state media. The marketing is getting more and more concerned that a preliminary trade deal may not happen any time soon as disputes over human rights in Hong Kong and Xinjiang keep adding tensions between the two nations. A senior adviser to Trump said on Monday that a deal between China and the US is still possible before the year ends, but talks have been dragging on for weeks.

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