Investing.com - Crude oil gained in Asia on Tuesday after thin overnight dealings as investors mull the impact of supply disruptions against the outcome of an OPEC meeting later this week expected to do little to change global oversupply.
Crude oil for July delivery on the New York Mercantile Exchange rose 0.34%, to $49.50 a barrel.
Overnight, oil prices were slightly lower in North American trade on Monday, as market players focused on an improving global supply outlook.
Brent crude on the Intercontinental Exchange was last quoted up 0.72% to $50.31.
Expectations for an increase in Canadian oil sands production this week mounted as oil producer Suncor Energy announced plans to ramp up output at its fields in Alberta after it was forced to shut them down earlier in May due to massive wildfires.
Supply outages due to wildfires in Canada and unrest in Nigeria have helped push oil prices above the $50-level late last week. However, as some of the supply disruptions are subsiding, traders are putting their focus back on the growth of global oil supply.
According to reports, Iraq plans to ship 5 million extra barrels of crude in June. Saudi Arabia, Kuwait, Iran and the United Arab Emirates are also planning to increase supplies later this year.
Market players are now looking ahead to the Organization of Petroleum Exporting Countries meeting in Vienna on Thursday. Most market analysts expect the oil cartel to keep their production quota unchanged amid rising prices.
The oil cartel’s most recent meeting in Qatar in April ended without agreement to freeze output at current levels due to Saudi Arabia's insistence that Iran be part of the agreement.