Oil Near $53

Oil traded near $53 a barrel on Tuesday, close to a two-month high, supported by signs that a persistent inventory glut is starting to ease and strong global demand, although stronger OPEC production kept a lid on gains.

Brent crude, the international benchmark, was down 9 cents at $52.63 a barrel. The contract traded intraday at $52.93, the highest since May 25. US crude was up 1 cent at $50.18, CNBC reported.

“The most bullish argument looking forward is that we are now in the second half of the year,” said Tamas Varga of oil broker PVM. “Global demand is expected to pick up significantly.”

Some forecasters, including the International Energy Agency, have been raising their demand estimates. BP, which reported earnings on Tuesday, was upbeat, seeing demand growing by 1.4 to 1.5 million barrels per day.  The Organization of Petroleum Exporting Countries, as part of a deal with Russia and other non-members, is reducing output by about 1.2 million bpd from Jan. 1, 2017, until March next year to get rid of excess supply.