Oil futures traded on a mixed note Tuesday after global benchmark Brent crude briefly climbed above 75 a barrel for the first time in more than two years.
Upside was capped after Reuters and Bloomberg both reported that the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC, had discussed a further relaxation of production curbs beginning in August.
Reports that OPEC is already discussing an increase in its output from August, ahead of its scheduled meeting on July 1, indicates that the demandsupply gap is already becoming an issue, and that the alliance is working on a plan to tap that deficit, said Louise Dickson, oil markets analyst at Rystad Energy, in a daily note.
The OPEC chatter to raise supply is the most bearish risk for the recent oil price rally, which has been propelled on strong summer demand and an overall conservative supply environment, she said.
The most active, U.S. benchmark West Texas Intermediate crude for August delivery rose 3 cents, or less than 0.1, to 73.15 a barrel on the New York Mercantile Exchange. July WTI crude, which expires at the end of the trading session, was up 9 cents, or 0.1, at 73.75 a barrel.
August Brent crude was down 2 cents, or less than 0.1, at 74.88 a barrel after hitting an intraday high at 75.30. Brent last traded above 75 in April 2019 on an intraday basis, according to FactSet. It hasnt settled at a level that high since October 2018.
OPEC will likely loosen supply, either…