Crude exceeds $67 as demand outweighs Opec+ output plan

Crude exceeds $67 as demand outweighs Opec+ output plan

Bloomberg

Oil advanced ahead of an Opec+ policy meeting as traders expect rising demand to absorb a planned production increase from the group as well as any additional crude from Iran. Futures in New York climbed past $67 a barrel, putting crude on track for a second straight monthly gain. Opec and its allies are expected to stick with a decision to boost output in July when the group gathers on Tuesday, according to a Bloomberg survey last week. While rebounding demand is driving prices higher, the possibility of more barrels is clouding the outlook. "I'm really looking at what Opec+ says about the period beyond the next two months and whether they indicate they're positive about demand continuing to grow and that being able to absorb extra barrels,“ said Ed Bell, an oil analyst at Dubai-based bank Emirates NBD PJSC. "Our balances still point to a deficit of supply in the second half and that points to oil being about where it is now.“ The US, China and parts of Europe are driving robust demand recovery from the Covid-19 pandemic, despite a virus comeback across Asia. American gasoline stockpiles have declined and consumption gained in the lead up to the