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Oil Prices Rise On Hopes Of Extended Output Cuts

Oil prices rose on Tuesday amid optimism that the so-called OPEC+ alliance, made up of OPEC and non-OPEC countries including Russia, would agree to extend production cuts in a bid to support prices.

Benchmark Brent crude rose 0.45 percent to $62.86 a barrel, while U.S. crude futures were up 0.65 percent at $58.23 a barrel.

U.S. oil futures jumped over 2 percent on Monday and Brent finished the day 1.7 percent higher after new Saudi energy minister said the global deal cutting oil production by 1.2 million barrels per day would survive.

Saudi Arabia's King Salman has replaced the kingdom's energy minister with one of his sons, naming Prince Abdulaziz bin Salman to one of the most important positions in the country.

The appointment is the first time a Saudi prince from the ruling Al Saud family heads the key energy ministry.

Prince Abdulaziz said the pillars of Saudi Arabia's policy would not change and a global deal to cut oil production by 1.2 million barrels per day would continue.

A deal agreed a year ago by major oil producers to limit output was "until death do us part," he said in his first public appearance since being appointed.

Previous attempts to limit output had been "successful but temporary in nature…Now it is different in quality, size and perpetuity," Prince Abdul Aziz told a packed house at the World Energy Congress in Abu Dhabi.

A meeting of OPEC and OPEC+ countries in Abu Dhabi this week is likely to adopt new metrics to monitor the state of the global oil market and its balance, Russian news agency TASS quoted OPEC's Secretary General Mohammad Barkindo as saying.

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