Oil prices have edged higher as investors await a decision from top producers on record output cuts extension.

A meeting is expected to be held this weekend to discuss extending supply cuts.

Reuters reported that Brent crude LCOc1 futures increased by $0.27, or 0.7%, at $40.26 a barrel, while US West Texas Intermediate (WTI) crude CLc1 futures were up by $0.17, or 0.5%, to $37.58 a barrel.

Both the benchmarks have seen gains for the past six weeks, supported by record production cuts from the OPEC+ Group.

Easing of Covid-19-related lockdown restrictions by many countries is also one of the reasons for the surge in prices.

Citing an OPEC source, Algeria’s Ennahar TV channel reported that the OPEC+ group will meet on 6 June.

OANDA senior market analyst Edward Moya was quoted by Reuters as saying: “There still could be a chance that they manage to stretch the cut deal to three months, but energy traders would be extremely sceptical that compliance would remain high beyond July.”

Oil producers Saudi Arabia and Russia have agreed to support the extension of 9.7 barrels per day (bpd) in supply cuts backed in April by the OPEC+ group into July.

ANZ Research said in a note: “The growing fear is that not only will a deal to extend the deep cuts not be reached, but (some) producers may even relax their current over-compliance. This would ultimately see output rise in coming weeks.”