In the early Asian Trade on Monday Oil prices climbed which is underpinned by the bright outlook for fuel demand growth in the next quarter. The investors looked ahead to the OPEC+ meeting this week for supply guidance.Brent crude futures for August nudged 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 outstrip supply despite the possible return of Iranian crude and condensate exports. Iran is in talks with world powers and working on steps that Tehran and Washington must take on sanctions and nuclear activities to return to full compliance with the 2015 nuclear pact.
ANZ analysts said that there is noticeable demand outstripping supply in the order of 650,000 barrels per day and 950,000 barrels per day in Quarter 3 and Quarter 4 respectively. This addition includes 500,000 barrels per day of increase in Iranian output.
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.The Energy Information Administration reported on Friday that the crude output in the United States soared 14.3% in March. The Baker Hughes data showed Oil and gas rigs rising for the 10th month in a row last week.