Oil prices climb on improving demand outlook By Reuters

© Reuters. FILE PHOTO: A pump jack stands idle in Dewitt County, Texas January 13, 2016. REUTERS/Anna Driver/File Photo

By Florence Tan

SINGAPORE (Reuters) -Oil prices climbed in early Asian commerce on Monday, underpinned by the intense outlook for gas demand progress within the subsequent quarter, whereas buyers regarded forward to the OPEC+ assembly this week to see how producers will reply.

futures for August rose 50 cents, or 0.7%, to $69.22 a barrel by 0614 GMT after settling at their highest in two years on Friday. U.S. West Texas Intermediate crude for July was at $66.87 a barrel, up 55 cents, or 0.8%.

U.S. and UK markets are closed on Monday resulting from public holidays.

Both contracts are on observe for a second month-to-month achieve as analysts count on oil demand progress to outstrip provide regardless of the attainable return of Iranian crude and condensate exports.

Iran has been in talks with world powers since April, working on steps that Tehran and Washington should take on sanctions and nuclear actions 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 stated, including that this consists of 500,000 bpd of enhance in Iranian output.

The Organization of the Petroleum Exporting Countries and their allies together with Russia will meet on Tuesday.

The group often known as OPEC+ is predicted to remain the course on its plans to steadily ease provide cuts till July.

“We don’t think Iran derails any arrangement with OPEC+, hence the already agreed unwinding of cuts from July are expected to continue and are already baked into balances,” Energy Aspects analyst Virendra Chauhan stated.

Separately, crude output within the United States soared 14.3% in March, the Energy Information Administration reported on Friday, whereas Baker Hughes information confirmed oil and fuel rigs rising for a 10th month in a row final week.

EIA’s information additionally confirmed {that a} cargo of 1.033 million barrels of Iranian was recorded as touchdown on U.S. shores in March, the primary cargo of Iranian oil to the United States since 1991.

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