(Reuters) – Oil prices rose on Thursday, boosted by an expected summer surge in consumption and OPEC+ production cuts, although gains were capped by rising output from other producers and potential economic volatility from a changing political landscape.
At around 11:30 a.m., Brent crude futures were up 51 cents, or 0.61%, at $85.52 a barrel. U.S. West Texas Intermediate crude futures were up 57 cents, or 0.7%, at $82.10.
Both contracts gained about 6% in June, with Brent crude settling above $85 a barrel for the past two weeks after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, together known as OPEC+, extended most of their major oil production cuts into 2025.
That has led analysts to expect a supply shortfall in the third quarter, as transportation and summer air conditioning demand eat into fuel supplies.
The Energy Information Administration (EIA) said on Friday that oil production and demand for major commodities rose to four-month highs in April, supporting prices.
“Demand indicators look solid, especially in the all-important U.S. market, and peak crude demand from refiners is now firmly in place and should last through August,” JPMorgan analysts wrote in a note to clients.
(Translated by Chiara Scarciglia, edited by Sabina Suzzi)
