Brent oil rose past the $70 a barrel level after OPEC+ said it expects tightening of the global market, reports Bloomberg. OPEC+ says surplus oil accumulated during the pandemic has dwindled and stockpiles could rise in the second half of the year.
OPEC+ are expected to ratify a planned production output in July in June 1 meeting.
Recoveries in the oil demand in the U.S and Europe has allowed OPEC+ to absorb additional inventories.
Prospects of increased supply from Iran and pandemic rout in Asia could add extra barrels, despite OPEC+ projecting a fall in stockpiles by about 2 million barrels a day in September-December.
Analysts see oil rising to $80 a barrel by the third quarter if Iran does not proceed with the planned output.
Crude oil futures are currently gaining. CL1! Is up 2.97%
