SULAIMANI (ESTA) — Oil prices rose on Monday, underpinned by the bright outlook for fuel demand growth in the next quarter.
Brent crude futures for August rose 53 cents to $69.25 a barrel by 0723 GMT, while U.S. West Texas Intermediate crude was at $66.88 per barrel, up 56 cents.
Both contracts are on track for a second monthly gain as analysts expect oil demand growth to outstrip supply despite the possible return of Iranian crude and condensate exports, according to Reuters.
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 told Reuters, noting that this includes 500,000 bpd of increase in Iranian output.
Investors also looked ahead to the OPEC+ meeting on Tuesday to see how producers will respond.
The group, including OPEC and its allies is expected to stay the course on its plans to gradually ease supply cuts until July.
Separately, crude output in the United States soared 14.3% in March, the Energy Information Administration reported on Friday, while Baker Hughes data showed oil and gas rigs rising for a 10th month in a row last week.
