WASHINGTON (dpa-AFX) - Oil prices moved higher on Tuesday amid hopes demand for oil will pick up in the U.S. driving season, and on expectations the Organization of Petroleum Exporting Countries and allies, collectively known as OPEC+, will decide to extend their production cuts into the next quarter.
Tensions in the Middle East are rising after the death of an Egyptian soldier during a clash with Israeli troops at a Gaza crossing on Monday.
Israeli Prime Minister Benjamin Netanyahu called the airstrike Sunday at a tent camp northwest of the Gazan city of Rafah a 'tragic mistake' as international condemnation grew.
West Texas Intermediate Crude oil futures for July ended higher by $2.11 or about 2.7% at $79.83 a barrel.
Brent crude futures were up $1.30 or about 1.58% at $84.18 a barrel a little while ago.
It is widely expected that OPEC+, which is set to meet on June 2nd, will extend voluntary output cuts of 2.2 million barrels per day into the second half of the year.
Investors expect fuel demand to be fairly strong in the U.S. summer driving and vacation season.
Investors are awaiting a report on personal income and spending, which includes readings on inflation said to be preferred by the Federal Reserve. The inflation data could have a significant impact on the outlook for interest rates ahead of the Fed's next monetary policy meeting on June 11-12.
A soft PCE price index reading could trigger rate cut bets. And, lower rates will support the outlook for economic growth and energy demand.
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