Oil rises as Saudi Arabia says producers will cooperate beyond 2018

SINGAPORE (Reuters): Oil prices climbed on Monday, pushed higher by comments from Saudi Arabia that cooperation between oil producers who are currently withholding supplies would continue beyond 2018.

Strong global economic growth and a drop in US drilling activity also supported crude, traders said.

Brent crude futures were at $68.89 a barrel at 0315 GMT, up 25 cents, or 0.4%, from their last close. Brent on Jan. 15 rose to $70.37, its highest since December 2014.

US West Texas Intermediate (WTI) crude futures were at $63.61 a barrel, up 24 cents, or 0.4%, from their last settlement. WTI climbed to $64.89 on Jan. 16, also its highest since December 2014.

Saudi Arabia, the world’s top oil exporter and de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), said on Sunday major oil producers were in agreement they should continue cooperating on production after their deal on supply cuts expires this year.

A group of oil producers including OPEC and Russia, the world’s biggest crude producer, started to withhold production in January last year to prop up prices. The deal is set to expire at the end of 2018.