OPEC moves towards output cap extension as meeting kicks off

OPEC and its oil-producing allies shifted Monday towards extending their daily output caps, sending oil prices racing higher before the outcome of the cartel's official gathering.

Ministers from the 14-nation Organisation of the Petroleum Exporting Countries (OPEC) met in Vienna to discuss output, before gathering a day later for OPEC+ -- which is a grouping of 24 oil-producing countries that includes Russia and together accounts for almost half of global crude.

The enlarged crude producing club had already decided in December to remove 1.2 million barrels per day from the market to bolster prices and soak up excess supplies.

Russian President Vladimir Putin and Saudi Arabia agreed on Saturday to extend the deal by between six and nine months, but the move provoked consternation from some quarters.

The news nevertheless fired New York oil prices above $60 per barrel, with sentiment boosted also by the China-US trade truce agreed at the G20 in Osaka.

"Everyone supported the proposition