Prices for oil have started the week with further strengthening maintaining the previous upward pace. Quotes gained more than 2% over the previous trading.
According to the market information, the increase is related to the reports about cartel's intentions to renew the oil production cut agreement until the end of the year.
On Monday, WTI futures prices moved up to $54.20/bbl; Brent futures – $63.41/bbl.
Last Friday, Saudi Arabia's Minister of Energy Khalid Al Falih stated that the OPEC members were about to renew the agreement, though they still had to discuss these intentions with the allies. As he noted, Saudi Arabia managed to overfulfill the targets under the agreement to prevent the increase in the global reserves. For reference, the production was 700,000 bbl per day below the quotas set at 10.311 million per day.
Khalid Al Falikh expressed doubts about the need for more stricter restrictions, while the size of quotas may depend on the situation in Iran and Venezuela among other countries.
Meanwhile, the cancellation of the duties on Mexican products that was implemented by Washington once the American and Mexican parties agreed on the migration issue has also supported the oil market.
Notably, the data showed that an active rig number decreased to the low of February 2018.
At the same time, the gold market has shown a decline during the Asian session. August futures for gold reported dropped to $1,332.05/oz at NY Commodities Exchange. The decline is said to be related to strong economic reports from China as well as the US-Mexico trade deal.
According to the date unveiled by Beijing, the trade balance surplus of China exceeded the forecast level despite the long-lasting struggle between the USA and China.
The market experts believe that gold prices still can reach $1,400/oz in 2019 on further risk hedging applied by investors.