WTI crude oil is starting the brand new week on a bullish mode, gaining more than 2% early on Monday over optimism of extended production cuts in oil by OPEC+ countries until the end of July. At the time of writing, WTI crude oil is trading at around $39.83 per barrel.

OPEC and its allies, including Russia, conducted their online meeting on Saturday and came to an agreement to curtain global oil supply by nearly 10% until the end of next month. At their last meeting, OPEC+ countries had initially agreed to implement the 9.7 million bpd cut until June to offset the falling demand and prices for crude oil in global markets.

After the deal was agreed to, the world’s largest oil exporter Saudi Arabia increased its monthly prices for crude oil, helping boost oil prices overall. While the deeper supply cuts lend support to oil prices, there are still some concerns about whether countries like Iraq and Nigeria are complying with the new terms.

Oil prices could also be pressured by the resumption of crude production from Libya, where two key oilfields look set to restart operations after several months of blockade. Any increase in global oil supply at a time when demand remains weak amid the coronavirus crisis can drive crude oil prices lower in the coming months.