Brent crude futures climbed more than 2 per cent, gaining $2 a barrel on Monday as further supply cuts in Opec+ production are expected in the coming weeks.

Brent crude futures were up $2.00 to $82.61 a barrel by 1539 GMT. US West Texas Intermediate crude was up $1.65, or 2.17 per cent at $77.54. The front-month December WTI contract expires later on Monday. The more active January futures gained $1.79 to $77.83.

Both contracts settled 4 per cent higher on Friday after three Opec+ sources told Reuters that the producer group, comprising the Organization of the Petroleum Exporting Countries (Opec) and allies, including Russia, is set to consider whether to make additional supply cuts when it meets on November 26.

Oil prices have dropped almost 20 per cent since late September while prompt inter-month spreads for Brent and WTI slipped into contango last week.

In a contango market, prompt prices are lower than those in future months, signalling sufficient supply.

“In light of last week’s obliteration of oil bulls, some kind of response was forthcoming from the (OPEC) producer group,” said Tamas Varga of oil broker PVM.

Reuters