Oil prices edged up in Asia on Tuesday, extending gains from the previous session due to expectations of strong U.S. fuel demand during the summer and anticipation of an OPEC+ output decision on June 2. July Brent crude rose 6 cents to $83.16 a barrel by 0608 GMT, while U.S. West Texas Intermediate (WTI) crude for July was at $78.80 a barrel, up 1.39% from Friday’s close.
Analysts attributed the rise to the start of the U.S. summer driving season, despite concerns over higher U.S. interest rates impacting oil demand growth. UBS analyst Giovanni Staunovo noted that “real-time mobility data indicates oil demand growth is still broadly healthy.” Additionally, U.S. domestic and international flight seat numbers for May showed significant increases, surpassing 2019 levels.
The upcoming OPEC+ meeting is expected to maintain current production cuts, supporting prices. Analysts also cited bullish demand expectations from China due to new stimulus measures for its semiconductor industry.