The price of oil rose to near $105 a barrel Tuesday on expectations for rising demand as the global economy strengthens.
By early afternoon in Europe, benchmark U.S. oil for July delivery was up 35 cents to $104.76 a barrel in electronic trading on the New York Mercantile Exchange. On Monday, the Nymex contract gained $1.75 to close at $104.41.
Brent crude, a benchmark for international oils, was up 26 cents to $110.25 a barrel in London.
Recent economic indicators that suggest stronger global growth include Japan raising its January-March GDP number, a fourth month of solid hiring in the U.S. and China's export growth accelerating in May. The European Central Bank's move to add stimulus to the eurozone economy is also expected to help.
Meanwhile, U.S. crude supplies are seen falling.
Data for the week ending June 6 is expected to show draws of 1.2 million barrels in crude oil stocks of 500,000 barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.
The American Petroleum Institute will release its report on oil stocks later Tuesday, while the report from the Energy Department's Energy Information Administration — the market benchmark — will be out on Wednesday.
This week's meeting in Vienna of the Organization of Petroleum Exporting Countries is largely expected to keep its output target of 30 million barrels a day unchanged.
"The production of OPEC is currently matching its official quota," said Olivier Jakob of Petromatrix in Zug, Switzerland. "With the current low price volatility OPEC has no incentive to change anything when it also has to deal with the uncertainty of" crude output and exports from Libya and Iran.
In other energy futures trading on Nymex:
— Wholesale gasoline rose 1.14 cents to $2.996 a gallon.
— Natural gas retreated 2.6 cents to $2.619 per 1,000 cubic feet.
— Heating oil added 0.2 cent to $2.893 a gallon.