Brent climbs near $ 70 on demand outlook and ahead of OPEC + meeting, Energy News, ET EnergyWorld

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SINGAPORE, – Oil prices rose on Tuesday ahead of an OPEC + meeting and on optimism that demand for fuel will increase in the coming months with the summer driving season starting in the United States, the world’s largest consumer of oil .

Brent futures for August gained 56 cents, or 0.8%, to $ 69.88 a barrel at 0125 GMT. U.S. West Texas Intermediate crude for July was $ 67.33 a barrel, up $ 1.01, or 1.5% from Friday’s close, with no settlement price for Monday due to a day American holiday.

“While there are concerns about the tightening of COVID-19 related restrictions in parts of Asia, the market appears to be more focused on positive demand from the United States and parts of Europe,” said Tuesday. from ING Economics analysts in a note.

“In the United States, the summer driving season officially kicked off after Memorial Day weekend, and we entered that time with gasoline stocks already down, and not too far from a low since. 5 years for this time of year. “

Tracking company GasBuddy said U.S. gasoline demand on Sunday jumped 9.6% above the average of the previous four Sundays, the highest Sunday demand since summer 2019.

Nonetheless, price increases were capped as more production is expected to hit the market.

The Organization of the Petroleum Exporting Countries and its allies – known as OPEC + – is likely to stick to the current pace of gradual easing of oil supply in a meeting on Tuesday, have OPEC sources said, as producers balance expectations of a recovery in demand against a possible increase in Iranian supply.

OPEC + decided in April to return 2.1 million barrels per day (b / d) of supply to the market from May to July, because it predicted that global demand would increase despite the surge in coronavirus cases in India, the third largest consumer of oil in the world.

“We believe that the market will be able to absorb this additional supply, and we therefore expect the group to confirm that it will increase its production as planned over the next 2 months,” added ING Economics analysts. .

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