Oil prices rise in anticipation of increased demand
Investors stay focused on the OPEC+ meeting this week to see the producers' reaction. Oil prices rose in early Asian trade on Monday as the next quarter was bolstered by a bright outlook for fuel demand growth.
Brent crude futures for August rose 50 cents, or 0.7%, to $ 69.22 a barrel at 0614 GMT after hitting a two-year high on Friday. West Texas Intermediate (WTI) July crude rose 55 cents, or 0.8%, to $66.87 a barrel.
US and UK markets are closed on Monday for public holidays.
Both contracts are about to post second monthly gains as analysts expect growth in oil demand to outpace supply despite the possible return of Iranian crude and condensate exports.
Iran has been in talks with world powers since April and is working on sanctions and steps to be taken in nuclear activities to fully comply with Tehran and Washington's 2015 nuclear deal.
Demand is outstripping supply, with 650,000 bpd and 950,000 bpd respectively in the third and fourth quarters, including a 500,000 bpd increase in Iranian production.
The Organization of the Petroleum Exporting Countries and its allies, including Russia, will meet on Tuesday. The group is expected to continue its plans to gradually ease supply cuts through July.
Iran is not expected to step out of the deal with OPEC+, so it is expected to continue to work out cuts that were already in the balance and agreed from July.
U.S. crude oil production rose 14.3% in March, while Baker Hughes data last week showed oil and gas drilling increased in a 10th month, the Energy Information Administration reported on Friday.
EIA data also showed that 1.033 million barrels of Iranian crude oil was transported to US shores in March and was registered as the first shipment of Iranian oil to the US since 1991.
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