Russia, Saudi Arabia agree to extend oil output cuts until March 2018

In Europe, Britain's FTSE 100 added 0.1 percent to 7,444, just short of its earlier all-time high of 7,460.20, while Germany's DAX fell 0.1 percent to 12,757, again shy of its earlier record of 12,832.30.

GBP/USD is supported in the range of 1.2860 levels and now trading at 1.2894 levels. The contract reached $52.63, the highest since April 21.

The dollar index, which tracks the greenback against a basket of major trade-weighted peers, was little changed at 99.219.

Conclusion: The outlook for the USA upstream oil & gas companies is much better today than it is was a year ago.

USD/CAD is supported at 1.3594 levels and is trading at 1.3636 levels. It touched its highest level since June 2015 earlier in the session.

Futures prices for oil, iron ore, aluminum and copper were all higher by the close in London.

Opec, Russia and other producers originally agreed to cut output by 1.8 million barrels per day in the first half of 2017, with a possible six-month extension, in a bid to shore up prices.

North Korea said on Monday it had successfully tested a newly developed mid-to-long range missile on Sunday aimed at verifying its capability to carry a "large scale heavy nuclear warhead".

Hedge funds now hold a very similar position to the one they held on November 29 before the OPEC deal was announced which raises the question of whether the outcome will be the same.

NZD/USD is supported around 0.6850 levels and now trading at 0.6878 levels. The CAC 40 in France was 0.1 percent lower, too, at 5,401. The result gave some optimism to investors who are cautiously waiting for Reserve Bank of New Zealand (RBNZ) Governor John McDermott to give a speech at (0500 GMT) on its economic forecasts. The New Zealand dollar rose to $0.6916 from around $0.6853 before retreating towards 0.6870 on profit taking.

Oil prices rose on the announcement that the countries want to extend the deal, which encompasses both nations in the Organization of the Petroleum Exporting Countries and some non-OPEC countries like Russian Federation. Australia's S&P/ASX 200 rose 0.38 percent, due largely to gains in its energy sub-index, which was up 0.9 percent.

Money managers cut their bullish Nymex WTI bets back to where they were before OPEC agreed to cut output, data from the U.S. Commodity Futures Trading Commission show. So why can a minor cut in supply affect the price worldwide?

Oil rose more than 2% on Monday to $52 a barrel after top exporter Saudi Arabia and Russian Federation said supply cuts needed to last into 2018, a step towards keeping an OPEC-led deal to support prices in place longer than originally agreed. On Monday, the benchmark NY rate was up 3.5 percent at $49.50 a barrel while the worldwide standard, Brent, spiked 3 percent to $52.39. US gold futures gained 0.48 percent to $1,233.60 an ounce.

North Korea is believed to be developing an intercontinental ballistic missile (ICBM) capable of carrying a nuclear warhead and reaching the USA mainland. The West Texas Intermediate crude gained 3.8 percent to $49.66 a barrel, while Brent crude rose 3.4 percent to $52.63.

Gold prices rallied 0.2 percent to $1,231.24 an ounce, extending Friday's 0.3 percent gain.

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