"A consensus is emerging that the producer group will prolong current cuts", said Stephen Brennock of oil broker PVM, referring to Opec and its allies.
Oil rose on Wednesday, topping $40 a barrel for the first time since March, supported by lower United States inventories, expectations Opec+ will keep oil output cuts in place and signs of demand recovery from the coronavirus crisis.
Saudi Arabia has been pushing to keep the deeper cuts in place longer, sources said.
Oil producers have been cutting back at record levels in May and June, with the restrictions set to taper off at the end of the month.
Brent's current prices are another clear risk-on signal to the markets, with Asian equities climbing while regional currencies are advancing against the US Dollar today.
It's not unusual for Russian Federation and Saudi Arabia to hold different positions before OPEC+ talks, and on most occasions the two producers have eventually found a compromise.
US West Texas Intermediate (WTI) crude futures gained US$1.06, or 2.9%, at US$37.87 a barrel. "We think they will seek to split the difference by agreeing to a one to three-month extension".
The group is likely to hold an online meeting on June 4 to discuss output policy, after Algeria, which now holds the presidency of OPEC, proposed a meeting planned for June 9-10 be brought forward. Russian Federation has no objection to the meeting being brought forward to June 4. The group implemented around three-quarters of the cuts pledged in May, according to a Bloomberg survey. Yet performance was marred by Iraq and Nigeria, who executed less than half of their agreed reduction.
His Nigerian counterpart Timipre Sylva posted a similar message on Instagram later on Tuesday. Saudi Arabia, Kuwait and the United Arab Emirates then made further voluntary cuts of about 1.2 million barrels a day for June, bringing the total OPEC+ curbs to nearly 11 million barrels a day.
There is talk, however, that the cuts may be extended by another month or two.
According to the original agreement reached earlier this year, OPEC+ was to cut 9.7 million bpd in combined production for two months-May and June-and then ease this to 7.7 million bpd, to stay in effect until the end of the year.