Saudi Energy Minister Khalid al-Falih said the deal would most likely be extended by nine months and no deeper reductions were needed.
“While this needs to be ratified by the remaining members of the OPEC+ group, this appears to be a fait accompli,” ANZ analysts said in a note.
Stephen Innes, managing partner at Vanguard Markets in Bangkok, said oil prices could also be supported in the medium term because of geopolitical tensions in the Middle East and as China’s central bank eases monetary policy to offset the impact from U.S. tariffs.
Oil prices have come under renewed pressure in recent months from rising U.S. supplies and a slowing global economy.
U.S. crude oil output in April rose to a fresh monthly record of 12.16 million bpd, the U.S. Energy Information Administration said in a monthly report on Friday.
Financial markets, meanwhile, were buoyed by a thawing of U.S.-China relations after leaders of the world’s two largest economies agreed on Saturday to restart trade talks.
Still, Citi analysts saw the announcements as a temporary truce to de-escalate the trade and tariff war, and were skeptical that both sides can reach a deal soon even though 90% of the trade deal has been completed.
“The fact that both sides have not been able to get the remainder of the deal done is difficult to comprehend, suggesting either the timing is not good or some may not want a deal,” they wrote in a note.