Oil continues to rise

Oil climbed on a quarterly rally on expectations that OPEC+ supply cuts will tighten the global market. U.S. crude rose to $82 a barrel after a modest two-day decline, while Brent crude rose above $86. The U.S. benchmark crude is up 14% this year. OPEC+’s 2 million-barrel-a-day cuts were extended through the end of June, supporting expectations that global inventories will shrink. Delegates ahead of a review meeting next week saw no need to recommend any changes as the quotas have proven effective, several officials said. Crude’s first-quarter recovery was also helped by Ukraine’s drone attacks on Russian energy infrastructure, geopolitical tensions in the Middle East and rising demand in Asian economies including India. Still, data this week showed a rise in U.S. domestic crude and gasoline inventories, easing some of the squeeze as non-OPEC+ oil supplies continue to expand. The bullish atmosphere has led some banks to warn that there’s room for higher prices, depending on how events play out. JPMorgan Chase & Co. stuck to its current forecast, saying this week that Brent could reach triple digits by September if the impact of Russian production continues.