Singapore May 29 2024: – Oil prices rose on Wednesday on expectations major producers will maintain production cuts at a meeting this Sunday at the same time fuel consumption should begin rising with the start of the peak summer demand season.
Brent crude futures for July delivery rose 27 cents, or 0.3%, to $84.49 a barrel at 0042 GMT. U.S. West Texas Intermediate futures for July climbed 35 cents, or 0.4%, to $80.18.
Traders and analysts expect the Organization of the Petroleum Exporting Countries and its allies including Russia, known as OPEC+, to keep voluntary production cuts totalling about 2.2 million barrels per day in place.
The Memorial Day holiday on Monday signals the start of the peak demand season in the U.S., the world’s biggest oil consumer, and keeping the production cuts in place should keep prices supported as consumption rises.
“Initial data suggest a relatively high number of U.S. holiday trips have been taken over the Memorial Day holiday, the traditional start of the driving season. Air travel has also been strong,” Daniel Hynes, senior commodity strategist at ANZ Bank, said in a note.
