2020.06.0510:11:00UTC+00Oil Prices Rally Ahead Of OPEC+ Meeting

Oil prices were on the rise Friday, heading for a sixth weekly gain after reports that OPEC+ reached a tentative agreement to extend record production cuts until the end of July.

Benchmark Brent crude jumped 2.6 percent to $41.02 a barrel, while U.S. crude futures were up 1.7 percent at $38.06.

A video conference of a group of leading oil producers, known as OPEC+, is likely to be held on Saturday to discuss the level of oil output reduction.

"We have started preparations for the meeting, OPEC will gather at 2 pm, while non-OPEC - at 4 pm Vienna time," TASS reported citing sources.

It was reported that Russia and Saudi Arabia had already agreed extension of the agreement for at least one month amid disputes about quota busting by various members of the group, notably Iraq.

Investors also await Baker Hughes international rig count data for further direction.

Last week, the number of active U.S. rigs drilling of oil declined by 15 to 222, dropping for 11 weeks in a row, suggesting further declines in domestic crude output.