Brent, WTI prices rise nearly 1
OPEC set to consider whether to make more supply cuts sources
US adds oil, gas rigs, first time in three weeks Baker Hughes

SINGAPORE, Nov 20 Reuters Oil futures edged higher on Monday, extending gains on expectations of OPEC deepening supply cuts to shore up prices, which have fallen for four weeks on easing concern of Middle East supply disruption amid the IsraelHamas conflict.

Brent crude futures climbed 66 cents, or 0.8, to 81.27 a barrel by 0700 GMT while U.S. West Texas Intermediate crude was at 76.49 a barrel, up 60 cents or 0.8.

The frontmonth December contract expires later on Monday while the more active January futures gained 65 cents, or 0.9, at 76.69 a barrel.

Both contracts settled 4 higher on Friday after three OPEC sources told Reuters that the producer group, made up of the Organization of the Petroleum Exporting Countries and their allies including Russia, is set to consider whether to make additional oil supply cuts when it meets on Nov. 26.

Oil prices have dropped by almost 20 since late September while prompt intermonth spreads for Brent and WTI slipped into contango last week. In a contango market, prompt prices are lower than those in future months, signalling sufficient supply.

Saudi Arabia, OPEC39;s defacto leader, is balancing the desire to keep oil prices high by limiting supply with the knowledge that doing so will lead to a further drop in overall market share, said Jorge Leon, senior vice president of…