London
Oil climbed towards $53 a barrel on Tuesday, reaching a two-month high, supported by signs that a persistent supply glut is starting to ease amid strong demand and OPEC-led production curbs.
US inventory reports due on Tuesday and Wednesday are expected to show crude stocks fell by 2.9 million barrels last week, the fifth straight week of declines.
Stocks have already fallen below year-ago levels. Brent crude, the international benchmark, was up 12 cents at $52.84 a barrel. The contract traded intraday at $52.93, the highest since May 25. US crude was up 20 cents at $50.37.
“The most bullish argument looking forward is that we are now in the second half of the year,” said Tamas Varga of oil broker PVM. “Global demand is expected to pick up significantly.”
Oil company BP, which reported its earnings on Tuesday, was upbeat on the demand outlook.
