Oil rose further above $62 a barrel on June as firmer equities and expectations OPEC and its allies will keep withholding supply countered concern about slowing economies and demand.
Russia said on June 10 it might support an extension of OPEC-led supply cuts that have been in place since January, while equities rose after China eased financing rules to stem an economic downturn, giving oil a lift.
Brent crude, the global benchmark, rose 33 cents to $62.62 a barrel at 1313 GMT. U.S. West Texas Intermediate was up 45 cents at $53.71.
"Prices are finding support from the prospect of OPEC oil production remaining restricted beyond mid-year," said Carsten Fritsch, an analyst at Commerzbank.
Still, the price of Brent is down almost 20% from its 2019 peak above $75 a barrel (bbl) in April, pressured by an economic downturn that has started to impact oil demand.
"Even planned and unintentional supply restrictions of more than 4 million barrels per day (MMbbl/d) have not been able to support prices as economic considerations took over in the last two weeks," said Tamas Varga of oil broker PVM. "The immediate price outlook remains anything but clear."
OPEC and some allies including Russia, known collectively as OPEC+, have withheld supplies since the start of the year to prop up prices.
OPEC+ is due to meet in late June or early July to decide whether to extend the pact. Russia's comments on June 10, and remarks last week from Saudi Arabia, bolstered expectations the deal will be renewed.
While the talk of prolonged supply restraint is supporting prices, concern about slowing demand and economic growth has had a bigger impact on sentiment.
"It is proving hard work papering over a suite of rather less supportive data being digested by the market," said analysts at JBC Energy in Vienna.
Analysts expect fuel consumption to stutter along with the global economy. Energy consultancy FGE said global crude demand growth could drop below 1 MMbbl/d in 2019 from the 1.3 to 1.4 MMbbl/d expected previously.
OPEC+ has been trying to stop inventories building up and the latest weekly reports from the United States are expected to show a small, 500,000-bbl decline in stocks.
Analysts estimate that crude inventories fell 500,000 bbl last week. The American Petroleum Institute (API), an industry group, issues its report at 2030 GMT.
The spread between Brent and WTI has narrowed, making US oil less attractive.
Hedge funds cut their bullish positions in petroleum last week for the second week running as anxiety about the slowing global economy and oil consumption trumped optimism over production restraint by OPEC and its allies.
The oil market will rally by $5 to $10 per barrel when it opens on Monday and may spike to as high as $100 per barrel if Saudi Arabia fails to quickly resume oil supply lost after attacks over the weekend, traders and analysts said.