Oil Prices Remain Steady As Market Expects Stronger Demand

Oil prices remained steady as the market expects stronger demand.

Gatekeepers News reports that the oil prices rose in early Asian trade on Monday, supported by the bright outlook for fuel demand growth in the next quarter as investors anticipate OPEC+ meeting this week for supply guidance.

Brent crude futures for August pushed up 7 cents, or 0.1%, to $68.79 a barrel by 0038 GMT after settling at their highest in two years on Friday. U.S. West Texas Intermediate crude for July was at $66.45 a barrel, up 13 cents, or 0.2%.

Both contracts are on track for a second monthly gain as analysts expect oil demand growth to exceed supply despite the likely return of Iranian crude and condensate exports.

Iran has been in talks with world powers since April working on steps that Tehran and Washington must take on sanctions and nuclear activities to return to full compliance with the 2015 nuclear pact.

“We see demand outstripping supply in the order of 650,000 barrels per day and 950,000 bpd in Q3 and Q4 respectively,” ANZ analysts said, adding that this includes 500,000 bpd of increase in Iranian output.

Gatekeepers News reports that the Organization of the Petroleum Exporting Countries and their allies including Russia will meet on Tuesday.

The group known as OPEC+ is expected to stay the course on its plans to gradually ease supply cuts until July.

Energy Information Administration on Friday said crude output in the United States soared 14.3% in March, while a separate report by Baker Hughes showed that oil and gas rigs rising for a 10th month in a row last week.