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Brent crude futures rose 54 cents, or 0.64%, to $85.55 a barrel
by 1105 GMT. U.S. West Texas Intermediate crude futures were up
49 cents, or 0.6%, at $82.03.
Both contracts gained about 6% in June, with Brent settling
above $85 a barrel in the past two weeks after the Organization
of the Petroleum Exporting Countries (OPEC) and its allies, a
group known as OPEC+, extended most of its deep oil output cuts
well into 2025.
That led analysts to forecast supply deficits in the third
quarter as transportation and demand for air-conditioning during
the summer eat into fuel stockpiles.
On Friday the Energy Information Administration (EIA) reported
that oil production and demand for major products rose to a
four-month high in April, supporting prices.
"Demand indicators look solid, especially in the all-important
U.S. market, and peak refinery demand for crude is now firmly in
place and should last through August," JPMorgan analysts wrote
in a client note.
Hopes of an interest rate cut by the U.S. Federal Reserve and
rising geopolitical concerns in Europe and between Israel and
Lebanon's Hezbollah have also kept a floor under prices, IG
analyst Tony Sycamore said in a note.
Traders are also watching for the impact hurricanes have on oil
and gas production and consumption in the Americas. The Atlantic
hurricane season started with Hurricane Beryl on Sunday.
"Increased volatility is anticipated in wider markets this week
as elections dominate the agenda in Europe and UK, while in the
U.S. concerns over President Biden's fitness for office, let
alone re-election, is dominating the news," said Panmure Gordon
analyst Ashley Kelty.
(Reporting by Arunima Kumar in Bengaluru and Florence Tan in
SingaporeEditing by David Goodman)
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