Oil rises after OPEC+ says to keep output cuts

Oil rose to multi-week highs on Monday after OPEC indicated it would probably maintain production cuts that have helped support prices this year, while tension continued to escalate in the Middle East.

Brent crude was up by 90 cents, or 1.3%, at $73.11 a barrel, having earlier touched $73.40, the highest since April 26.

U.S. West Texas Intermediate crude was up 71 cents, or 1.1% higher, at $63.47 a barrel. The U.S. benchmark reached $63.81 earlier, the highest since May 1.

Saudi Energy Minister Khalid al-Falih said on Sunday there was consensus among the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers to drive down crude inventories "gently" but he would remain responsive to the needs of a "fragile market".

U.S. President Donald Trump threatened Tehran on Sunday, tweeting that a conflict would be the "official end" of Iran, while Saudi Arabia said it was ready to respond with "all strength" and it was up to Iran to avoid war.

OPEC, Russia and other non-member producers, an alliance known as OPEC+, agreed to cut output by 1.2 million barrels per day (bpd) from Jan. 1 for six months to prevent inventories from increasing and weakening prices.

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