Brent crude prices pared early gains on Tuesday, but remained at the highest levels since November 2018, ahead of the OPEC+ meeting today, June 1, 2021.
International benchmark Brent crude was trading up 2.1% at $70.74 per barrel, at 1.45 pm Makkah time.
WTI crude rose 2.7% to $68.13 per barrel.
The “oil accumulated during the pandemic months is almost gone, and the second half of the year could see a sharp decline in oil reserves according to OPEC’s latest forecast, a decline that would create the need for extra oil pumping,” MarketWatch reported, citing Ipek Ozkardeskaya, senior analyst at Swissquote.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are expected to review output curbs when they meet later today.
In April, the OPEC+ decided to return 2.1 million barrels per day (bpd) of supply to the market from May to July.
The Joint Technical Committee of OPEC+ maintained its forecasts for the growth of global oil demand at 6 million barrels per day (bpd) in 2021, according to media reports.
“While there are concerns over tighter COVID-19 related restrictions across parts of Asia, the market appears to be more focused on the positive demand story from the US and parts of Europe,” Reuters reported, citing a note from ING Economics.
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