Oil prices traded in the green on Monday, reversing the losses from last week's sessions as investors regained some of their confidence despite the continuous rise in the United States stockpiles. Market watchers grew more optimistic the Organization of the Petroleum Exporting Countries (OPEC) output cut deal will prove effective, battling the existing crude market oversupply that has been prevailing for three years.
Earlier in May, OPEC members and other major oil producers led by Russia agreed to extend the original production cap agreement for another nine months. The first deal assumed the major exporters will cut the world output by as much as 1.8 million barrels per day in order to stabilize the market prices. Originally, investors were skeptical the new nine-month extension will be sufficient to overcome the inflated market. However, traders seem to have reconsidered their stance towards more optimistic.
West Texas Intermediate for July delivery gained 0.35% to trade for $45.99 per barbell at 12:05 pm CET. In the meantime, international benchmark Brent for settlements in August added 0.42%, changing hands for $48.34 per barrel at the same time.
