Oil prices climb in Asian Trading amid upcoming OPEC+ meeting
Oil prices rose during Asian trading at the start of the week, continuing the upward trend from the previous session, driven by expectations of robust fuel demand in the U.S. during the summer season, just before the OPEC+ output policy decision scheduled for June 2 meeting, Kazinform News Agency correspondent reports.
July Brent crude rose 21 cents to $83.31 a barrel by 0329 GMT. The more-active August futures rose 21 cents to $83.09. U.S. West Texas Intermediate (WTI) crude futures for July were at $78.90 a barrel, up $1.18, or 1.52%, from Friday's close, having traded through a U.S. holiday to mark Memorial Day without a settlement.
On Monday, oil prices had risen over 1% in a subdued trading environment due to public holidays in both Britain and the U.S., following a week dampened by concerns over U.S. interest rates amidst persistent inflation.
Analysts attribute the price support to the onset of the U.S. summer driving and vacation season, which boosts fuel demand.
In terms of air travel, U.S. domestic flight seat numbers for May increased by 5% month-over-month and nearly 6% year-over-year to just over 90 million, surpassing pre-pandemic levels, according to data from OAG, a flight analytics firm.
International seat numbers in May saw an 11% increase from the previous year to approximately 14.2 million, also 8% above the figures from 2019.
Attention is also focused on the upcoming virtual meeting of OPEC+ on June 2, where market participants anticipate that production cuts will be maintained to further support oil prices.
Earlier reports from OPEC+ indicated that an extension of the voluntary output cuts of 2.2 million barrels per day into the latter half of the year was probable. Additionally, a slight decrease in the U.S. dollar provided further support to the market.
Crude oil prices were stable on Tuesday morning, continuing to rise from the last two sessions. This increase was helped by a falling U.S. dollar, which also supports a positive outlook.
