Brent crude rose above $80 a barrel for the first time since early May amid signs of tightening supplies and slower-than-expected US inflation.
Prices have climbed since OPEC+ heavyweights Saudi Arabia and Russia pledged even more output reductions in an effort to rebalance the market. Strong Russian supply — despite sanctions due to the war in Ukraine — has been a headwind for the market. Those flows are now showing signs of dropping, with average shipments falling below February averages.
The global market is expected to tighten in the second half and stockpiles are forecast to draw through 2024, according to a report by the Energy Information Administration, which is due to release its weekly inventory figures later Wednesday.
Traders have also been watching for signs of when US monetary tightening may begin to ease and for its effect on economic growth. US inflation sharply cooled last month, offering fresh hope that the Federal Reserve can soon wrap up the most aggressive interest-rate hikes in decades.
Futures rose as much as 0.8% in London, climbing just above $80.
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