Oil prices rose on Monday, supported by expectations of a supply deficit caused by peak fuel consumption in the summer and OPEC+ cuts in the third quarter.
Oil's rise comes despite headwinds from the global economy and rising production from outside OPEC+ that limited gains.
Brent crude futures rose 33 cents, or 0.4%, to $85.33 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were at $81.86 a barrel, up 32 cents, or 0.4%, according to Reuters.
The two benchmarks rose about 6% in June, with Brent settling above $85 a barrel in the past two weeks, after the Organization of the Petroleum Exporting Countries and its allies, OPEC+, extended most of their oil production cuts until 2025.
That has prompted analysts to expect a supply deficit in the third quarter, as demand for transportation and air conditioning during the summer leads to lower fuel inventories.
Oil production and demand for key products rose to a four-month high in April, supporting prices, the Energy Information Administration reported Friday.
Factory activity among China’s smaller manufacturers grew at the fastest pace since 2021 on overseas orders, a private gauge showed, even as a broader survey pointed to weak domestic demand and trade tensions leading to another contraction in the industrial sector.
China is the world's second largest consumer and largest importer of crude oil.
Traders are monitoring the impact of weather conditions on oil and gas production and consumption in North and South America.
