Oil prices edged higher on Tuesday, spurred by positive demand indicators, while also treading cautiously ahead of a meeting by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) to decide the group’s August output policy.
Brent crude gained 37 cents or 0.6 per cent to trade at $67.11 a barrel and the US West Texas Intermediate (WTI) crude expanded by 34 cents or 0.5 per cent to finish at $65.45 a barrel.
Supportive data from a private-sector survey in China, which showed factory activity returned to expansion in June, boosted sentiments. China is the world’s largest crude importer and this serves a cue for positive demand.
Also, plans by Saudi Arabia to raise its August crude oil prices for buyers in Asia to a four-month high as well as firm premiums for Russian ESPO Blend crude oil were also supporting the notion of robust demand.
Expectations that the OPEC+ group will boost its August crude oil output by an amount similar to the outsized hikes agreed in May, June, and July remain a cast over prices.
It was reported last week that the group plans to raise output by 411,000 barrels per day next month when it meets on Sunday, July 6.
Market analysts noted that adding another 411,000 barrels per day of production is part of efforts to gain more market share, amid increasing competition from US shale producers.
The 22-nation group has also been trying to punish overproducing members like Kazakhstan. Kazakhstan, one of the world’s 10 largest oil producers, raised oil production last month to match an all-time high.
This come as US shale producers, pumped oil at a record pace in April, according to official data released on Monday.
Investors are also watching trade negotiations ahead of US President Donald Trump’s tariff deadline of July 9 as President Donald Trump on Tuesday said he is not thinking of extending the deadline.
One of the countries that could come to the deal table was India, one of the world’s largest crude consumers, after US Treasury Secretary Scott Bessent said so on Tuesday.
President Trump also said the US will possibly have a deal with India, but he added that he doubts there will be a deal with Japan.
Crude oil inventories rose by 680,000 barrels in the past week, according to the American Petroleum Institute (API). Official data from the US Energy Information Administration (EIA) is due later Wednesday.