Oil prices rise further on tight supply outlook, eyes on OPEC+

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Oil prices climbed for a third straight session on Friday, on track for a fifth consecutive weekly gain, as demand growth is expected to outstrip supply on bets that OPEC+ producers will be cautious in returning more output to the market from August.

Brent crude futures rose 6 cents, or 0.1%, to $75.62 a barrel at 0646 GMT, heading for a 2.9% jump for the week.

Oil also got some support on Friday as the approval of U.S. infrastructure bill boosted optimism for energy demand outlook, analysts said. " certainly has momentum behind it...It's really in the hands of OPEC+," said Commonwealth Bank commodities analyst Vivek Dhar. "I think OPEC+ will carefully calibrate production hikes from August onwards to meet rising demand without causing significant price fluctuations," said Margaret Yang, a strategist at Singapore-based DailyFX.ANZ analysts have predicted OPEC+ would step up supply with a small increase of 500,000 barrels per day in August, adding to the 2.1 million bpd they agreed to return to the market from May through July.

 

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