Oil Holds Near $74 With Focus Turning to Upcoming OPEC+ Meeting By Bloomberg

(Bloomberg) — Oil held steady near $74 a barrel at the open in Asia as investors focused on an OPEC+ meeting toward the end of the week that may pave the way for increased supply.

Futures in New York were little changed after a fifth weekly gain, while global benchmark Brent traded near its highest level since October 2018. The alliance gathers on Thursday to discuss its production policy for August, with the group expected to revive more halted output. The market has firmed in a bullish structure as the global vaccine rollout boosts demand.

Oil is up more than 50% this year as a robust rebound from the pandemic in key regions such as the U.S. and China underpins fuel consumption. The rapid recovery has also drained stockpiles built up during Covid-19, with the International Energy Agency urging OPEC+ to keep markets balanced.

An increase in Iranian crude flows is also unlikely to materialize any time soon as talks to revive a nuclear deal drag on. Some analysts predict the election of conservative cleric Ebrahim Raisi as Iran’s new president may delay a pact.

The prompt timespread for Brent was 80 cents a barrel in backwardation — where near-dated contracts are more expensive than later-dated ones. That compares with 85 cents a week earlier.

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