OIL MKT DRIVERS: OPEC Set for 9-Month Extension; Trade Truce

By Alex Longley

(Bloomberg) —

Summary of what’s shaping the oil market on Monday: OPEC began two days of meetings with its allies on Monday in Vienna and was set to prolong existing output cuts by 9 months. The U.S. and China signaled a thawing in trade tensions between the two nations.

OPEC and its allies look set to extend output cuts into 2020, after an agreement between Russia and Saudi Arabia at the G-20 over the weekend

With meetings underway, the OPEC+ JMMC backed a 9-month extension
Iran has said it will accept a 6-9 month extension, while also suggesting it won’t ask for the official communique to criticize U.S. sanctions
You can follow rolling coverage of events in Vienna on Bloomberg’s TOPLive coverage here

Stocks and other assets also climbed globally after the U.S. and China reached a truce in the trade war and agreed to resume talks toward a deal

President Trump tweeted over the weekend that his meeting with President Xi was far better than expecte Iran has surpassed a limit on its stockpile of enriched uranium and is preparing to scrap some of the key components of its nuclear deal next week, two state-run news agencies reported
With uncertainty hanging over the market, hedge funds cut their total positions in crude to their lowest level in six years

To contact the reporter on this story:
Alex Longley in London at alongley@bloomberg.net

To contact the editors responsible for this story:
Alaric Nightingale at anightingal1@bloomberg.net
Christopher Sell, Helen Robertson