Oil prices gain on expectations OPEC+ will extend output cuts

LONDON, May 29 (Reuters): Oil prices grazed a four-week high on Wednesday on expectations that major producers will extend output cuts at a meeting on Sunday and that fuel consumption will start rising as the peak summer demand season kicks off.
Brent crude futures were up 19 cents, or 0.2 per cent, at $84.41 a barrel at 1335 GMT, after touching the highest since May 1 at $85.02.
US West Texas Intermediate futures were up 34 cents, or 0.4 per cent, to $80.17, after also hitting the highest since May 1 at $80.62.
Both benchmarks gained more than 1 per cent on Tuesday.
Traders and analysts expect the OPEC+ group, comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, to keep voluntary production cuts of about 2.2 million barrels per day (bpd) in place.
"We see no appetite at this juncture to add more barrels to the market and trigger another price move to the downside," said RBC Capital analyst Helima Croft.
"The current price level is already causing several producers to take on additional debt and push out timelines for some high-profile projects."
The onset of the northern hemisphere summer season, when demand for road and aviation fuels peaks, was also supporting prices.
"Initial data suggest a relatively high number of US holiday trips have been taken over the Memorial Day holiday, the traditional start of the driving season. Air travel has also been strong," ANZ commodities strategist Daniel Hynes said in a note.