Brent crude trading above $70 for first time since May 18

Brent oil advanced above $70 a barrel after the OPEC+ alliance forecast a tightening global market ahead of a production policy meeting, Report informs referring to Bloomberg.

As of 9:13 (GMT+4), the price of August futures for the North Sea Brent oil blend grew by 1.14 percent - to $70.11 per barrel. July futures on WTI oil rose in price by 1.87 percent - to $67.56 per barrel.

Futures in London rose as much as 1.4 percent after posting a second straight monthly gain. The oil glut built up during the pandemic has almost gone, and stockpiles will slide rapidly in the second half of the year, according to an assessment of the market from an OPEC+ committee. The coalition is expected to ratify a scheduled output increase for July when it meets later on June 1.

OPEC’s Joint Technical Committee forecast stockpiles will decline by at least 2 million barrels a day from September through December.

“There’s some confidence right now improving demand should be able to absorb what could be an additional 2 million barrels a day from Iran if it materializes,” said Howie Lee, an economist at Oversea-Chinese Banking Corp. “Demand from the US has been driving the global consumption recovery.”