Oil edges higher as tighter supply looms, growth concerns weigh

Oil prices increased slightly on Monday despite concerns about weak global growth that could impact fuel demand. The increase in prices follows surprise supply cuts from OPEC+ in May, which pushed crude prices up 6 percent last week. Analysts are questioning the demand outlook in light of the cuts. In addition, there was a steeper-than-expected drop in US crude inventories last week, while Iraq’s northern exports remained offline, leading to supply tightness. Oil is also supported by the upcoming monthly reports on oil demand and supply from OPEC and the International Energy Agency on Thursday and Friday respectively.