NEW YORK (CNBC) - Oil prices rose on Wednesday, heading for monthly and quarterly gains, after industry data suggested U.S. crude stockpiles were shrinking while an OPEC report foresaw an undersupplied market this year, but a possible glut next year.
The Brent crude contract for August, due to expire on Wednesday, was up 83 cents, or 1.1% at $75.59 a barrel by 1224 GMT. The September contract was up 99 cents at $75.27 a barrel. U.S. crude was up $1.10, or 1.5% at $74.08 a barrel.
Both Brent and WTIs are just below highs last reached in 2018, and are set to record their seventh monthly gain in the past eight months.
A Reuters poll showed that Brent was seen averaging $67.48 a barrel this year and WTI $64.54, both up from May’s poll.
Crude stocks in the United States were down by 8.2 million barrels, American Petroleum Institute data showed, according to two sources who spoke on condition of anonymity. Government data is due later on Wednesday.
Hopes for a broad recovery received a boost from Mohammad Barkindo, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), who said on Tuesday that demand is expected to rise by 6 million barrels per day (bpd) in 2021, with 5 million bpd of that coming in the second half of the year.
Goldman Sachs forecasts that demand will rise by a further 2.2 million bpd by the end of 2021, leaving a 5 million bpd supply shortfall.