Oil Contracts Are Heading For Gains For The Second Month in a Row

Oil prices rose in early Asian trade on Monday, buoyed by positive times for fuel demand growth next quarter, as investors look to this week’s OPEC+ meeting to see how producers will respond.

Brent crude futures for August delivery were up 50 cents, or 0.7%, at $69.22 a barrel, after setting the settlement price at a two-year high on Friday. And US West Texas Intermediate crude for July delivery recorded $ 66.87 a barrel, up 55 cents, or 0.8%.

The US and UK markets are closed on public holidays today.

Both contracts are heading towards achieving gains for the second month in a row, with analysts expecting oil demand to grow at rates that exceed supply despite the return of Iranian crude and condensate exports.

Iran has been in talks with world powers since April, with the parties working on steps from Tehran and Washington toward sanctions and nuclear activities in return for full compliance with the 2015 nuclear deal.

The Organization of the Petroleum Exporting Countries and allies including Russia meet on Tuesday.

The group, known as OPEC+, is expected not to deviate from its plans to gradually ease supply cuts until July.