Oil prices have gained extra dollar with a barrel going for $52.37 in the global market on Monday, May 15.
The development is coming after the Saudi Arabia and Russia, the world’s largest producers, agreed to extend the historic OPEC deal till March 2018.
In a joint statement to journalists on Monday, May 15, Saudi’s energy minister, Khalid al-Falih and Alexander Novak, said they would do whatever it took to curb oversupply.
“There has been a marked reduction to the inventories, but we’re not where we want to be in reaching the five-year average,” Reuters quoted Falih to have said at a briefing in Beijing alongside Novak.
“We’ve come to conclusion that the agreement needs to be extended”.
Immediately after the briefing, oil prices began an upward swing to a three week high, gaining nearly $2 on the barrel.
The international benchmark for crude oil, Brent crude, gained around $1.53 to trade at $52.37 per barrel on the global market.
US oil, or West Texas Intermediate (WTI) also jumped by $1.43 to trade at $49.30 per barrel.
Meanwhile, the Organisation of Petroleum Exporting Countries (OPEC) are expected to meet on May 25, 2017 in Vienna, Austria to discuss the possibility of an extension of the historic oil deal, struck in 2016.
Experts have predicted another drastic slump in oil prices and some economic problems for the global economy if OPEC fails to reach a deal in May.