Oil prices rose in early trade on Monday, boosted by projections of a supply gap due to peak summer gasoline use and OPEC+ cuts in the third quarter, but gains were limited by global economic headwinds and rising non-OPEC+ output.
Brent crude prices increased 16 cents, or 0.2%, to $85.16 per barrel at 0032 GMT, while U.S. West Texas Intermediate crude futures rose 17 cents, or 0.2%, to $81.71 per barrel.
Both prices increased by roughly 6% in June, with Brent rising above $85 per barrel in the last two weeks after the Organisation of Petroleum Exporting Countries and their partners, known as OPEC+, extended the majority of its deep oil output cutbacks well into 2025.
Analysts predicted supply deficits in the third quarter as summer transportation and air-conditioning demand depleted fuel stocks.
WTI’s recent surge might extend to $85 per barrel if prices stay above the 200-day moving average of $79.52, he said.
Oil output and consumption in the United States reached a four-month high in April, according to the Energy Information Administration’s (EIA) Petroleum Supply Monthly report, which was released on Friday.
Traders are keeping an eye out for how hurricanes could affect oil and gas output and consumption in the Americas.
The Atlantic hurricane season began on Sunday with Hurricane Beryl. Beryl, the earliest Category 4 hurricane on record, is moving towards the Caribbean’s Windward Islands, where it is predicted to produce life-threatening gusts and flash flooding on Monday, according to the National Hurricane Centre in the United States.
China’s latest industrial figures did not speak well for oil consumption in the world’s second-largest consumer and top crude importer.
China’s industrial output dipped for the second consecutive month in June, while services activity fell to a five-month low, according to an official survey released on Sunday, reinforcing calls for additional stimulus as the economy fights to recover.
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