Brent oil extends gain as OPEC+ talks end without supply deal

Brent oil extends gain as OPEC+ talks end without supply deal

Brent oil extended gains after OPEC+ ended days of talks without a deal to bring back more halted output next month, depriving the market of vital barrels as the global economic recovery gathers pace. Futures in London traded above $77 a barrel after rising 1.3 per cent on Monday. The failure to reach an agreement means current production limits will remain in place for August unless talks are revived. A disagreement over how to measure output cuts upended a tentative proposal to boost supply. The situation is fluid and negotiations may be reactivated in time to add more output in August. However, the breakdown has damaged the group's image as a responsible steward of the market and raised the specter of a repeat of last year's destructive price war that sent oil crashing. "In theory, if the group keeps output unchanged in August that should be bullish for the market," said Warren Patterson, the head of commodities strategy at ING Group NV. "However, in reality, what is the likelihood that members actually keep output unchanged? I don't think it's very high." The global market has tightened significantly over the past few months amid a robust rebound in fuel demand in