Oil up on Monday

Oil prices went up on Monday due to peak summer consumption and OPEC+ production cuts, offset by increased output from other producers and potential economic volatility.

Brent crude rose 54 cents to $85.55, and US West Texas Intermediate (WTI) rose 49 cents to $82.03.

Both contracts gained about 6 per cent in June as OPEC+ extended output cuts into 2025, leading to expected supply deficits in Q3.

EIA reported April’s oil production and demand hit a four-month high. Solid US demand and peak refinery demand are expected through August. Geopolitical tensions and hopes for a US Federal Reserve rate cut also supported prices.

The Atlantic hurricane season and political events in Europe, the UK, and the US are anticipated to increase market volatility.

Attribution: Reuters.