Russia, Saudi Arabia agree to prolong OPEC oil agreement

Oil prices rise more than 1% after Russia agrees to extend OPEC+ deal

"I think most likely a nine-month extension", Falih told reporters when asked about Saudi preferences.

OPEC and its allies look ready to restrict the supply of oil at least until the end of 2019 as they try to support prices in the face of softer global demand and surging US output.

OPEC meets in Vienna on Monday followed by talks with Russian Federation and other allies, a grouping known as OPEC+, on Tuesday.

OPEC ministers are scheduled to meet on July 1 in Vienna to discuss their production policy for the next few months.

Since December's decision to cut production, conditions in the oil market have become increasingly complex, making a decision over an extension less clear.

The decision also means Russian Federation and Saudi Arabia are not immediately concerned about a possible military conflict in the Persian Gulf, which would disrupt crude shipments to consumers.

Riyadh contributed most to the cuts of 1.2 million barrels per day stipulated by OPEC+ deal.

Countries affected by United States sanctions have opposed the move, citing tight market conditions and high fuel prices that are harming oil-dependent industries.

U.S. crude oil output in April rose to a fresh monthly record of 12.16 million bpd, according to the U.S. Energy Information Administration, even though shale production growth likely peaked past year.

"An organization, where two members strive to challenge the interests of other members, is doomed to dissolution and talks of OPEC-non-OPEC agreements would be meaningless", Zanganeh said.

Saudi Arabia and Russian Federation ended years of animosity in 2016 to join forces to manage the global oil market in an effort to prop up prices.

Added to the picture, the cartel has also lost market share to the United States, whose booming shale output has transformed it into the world's biggest oil producer as well as a net exporter.

Brent crude neared $67 a barrel as it extended its recent recovery.

Oil prices leapt ahead of Mondya's meeting in Vienna on expectations that the group of top oil producers and allies will pledge to maintain cuts to their crude output for a further nine months.

Iran is on board with an output cut extension by Opec and its allies for the second half of the year, according to the country's petroleum minister, despite denouncing what he termed the alliance's "unilateralism".

He added, "If OPEC wants to be alive, we should take decisions inside OPEC and not receive decisions from outside OPEC".

But prices could stall as a slowing global economy squeezes demand and US oil floods the market, a Reuters poll of analysts found.

"The main oil producers are heading towards a decision to extend the oil production agreement by six to nine months", he said in a statement.

Zanganeh said he would not object to deepening the cuts but expressed frustration that Putin had announced the deal at a G20 summit in Osaka before waiting for OPEC to gather in Vienna.

U.S. crude oil output in April rose to a fresh monthly record of 12.16 million bpd, the U.S. Energy Information Administration said in a monthly report on Friday.

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