2020.06.0810:15:00UTC+00Oil Prices Rise As OPEC+ Extends Output Cuts

Oil prices rose on Monday after major crude producers agreed on Saturday to extend record output cuts through end-July. The curbed output represents some 10 percent of the world's overall supply.

Benchmark Brent crude rose about 1 percent to $42.72 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 0.8 percent at $39.87 a barrel.

The gains remained capped amid disappointment that the accord didn't extend beyond the end of July. Following the deal, world's top exporter Saudi Arabia sharply raised its monthly crude prices for July.

Experts said that compliance with the agreement among OPEC members such as errant producers Iraq and Nigeria, which was a sticking point headed into the gathering, will remain an issue going forward.

The potential return of Libyan output is also expected to cause considerable challenges for the OPEC leadership.

Libya's biggest oilfield is gradually resuming production after a five-month shutdown that shut off most of the country's production.