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Oil prices jump over 2% as OPEC set to extend supply cuts

Oil prices rose more than $1 a barrel on Monday, with OPEC and its allies on track to extend supply cuts until at least the end of 2019 at their meeting in Vienna this week.

Iran on Monday joined top producers Saudi Arabia, Iraq, and Russia in supporting a policy aimed at propping up the price of crude amid a weakening global economy.

The Organization of the Petroleum Exporting Countries, Russia and other producers, an alliance known as OPEC+, meet on Monday and Tuesday to discuss supply cuts. The group has been reducing oil output since 2017 to prevent prices from sliding amid a weakening global economy and soaring U.S. output.

Saudi Energy Minister Khalid al-Falih said the deal would most likely be extended by nine months and no deeper reductions were needed.

U.S. crude futures for August climbed $1.52, or 2.6%, to $59.99 a barrel, after earlier hitting their highest in over five weeks at $60.13.

Front-month Brent crude futures, for September, touched an intraday high of $66.63 a barrel and were up $1.72, or 2.7%, at $66.46 a barrel by 0639 GMT.

Stephen Innes, the managing partner at Vanguard Markets in Bangkok, said oil prices could be supported in the medium term because of geopolitical tensions in the Middle East and as China's central bank eases monetary policy to offset the impact from U.S. tariffs.

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