Oil prices rose in Asian trading on Wednesday on expectations major producers will maintain output cuts at a meeting this Sunday, and that fuel consumption should begin rising with the start of the peak summer demand season.
Brent crude futures for July delivery added 15 cents, or 0.2%, to $84.37 a barrel by 0304 GMT. U.S. West Texas Intermediate futures for July climbed 25 cents, or 0.3%, to $80.08. Both benchmarks gained more than 1% a day earlier.
Traders and analysts expect the Organization of the Petroleum Exporting Countries and its allies, including Russia, known as OPEC+, to keep voluntary production cuts totalling about 2.2 million barrels per day in place.
The anticipation of OPEC+ members extending their output cuts has injected optimism into the markets, and the move will be seen as a concerted effort to stabilize prices and rebalance the global oil market, said Sugandha Sachdeva, founder of Delhi-based research firm SS WealthStreet. “Furthermore, the onset of the summer driving season in the U.S. spurs a seasonal uptick in consumption and typically aids a positive momentum in crude oil prices,” she added.
