* Brent hits $75 a barrel for first time since April 2019
* Rally supported by expectations for global demand recovery
* OPEC+ discussing further gradual production increase
(Updates prices)
By Ahmad Ghaddar
LONDON, June 22 (Reuters) - Crude oil prices steadied on
Tuesday after Brent rose above $75 a barrel for the first time
since April 2019, with prices underpinned by a strong demand
outlook and as OPEC+ begins discussions on raising oil
production.
Brent crude futures gained 6 cents to $74.96 a
barrel by 1352 GMT after hitting a session high of $75.30 a
barrel, the strongest since April 25, 2019.
U.S. West Texas Intermediate (WTI) crude was at
$73.68 a barrel, up 2 cents.
OPEC+ is discussing a gradual increase to oil output from
August, but no decision has been taken on the exact volumes, an
OPEC+ source said on Tuesday.
The Organization of the Petroleum Exporting Countries (OPEC)
and allies, collectively known as OPEC+, is already returning
2.1 million barrels per day (bpd) to the market from May through
July as part of a plan to unwind last year's record output curbs
gradually as pandemic-hit demand recovers.
The group meets next on July 1.
Both benchmarks have risen for the past four weeks in
response to the global rollout of COVID-19 vaccinations and an
expected pick-up in summer travel.
" of tight physical markets and healthy demand
perceptions, the risk remains skewed to the upside," oil
brokerage PVM said.
BofA Global Research raised its Brent crude price forecasts
for this year and next, saying that tighter oil supply and
recovering demand could push oil briefly to $100 a barrel in
2022.
BP Chief Executive Bernard Looney on Tuesday told
Reuters that there was "a very strong possibility" high price
levels would be sustained over the coming years, "and if they
do, it's very good for our strategy".
Negotiations to revive the Iran nuclear deal took a pause on
Sunday after hardline judge Ebrahim Raisi won the country's
presidential election.
Raisi on Monday backed talks between Iran and six world
powers to revive a 2015 nuclear deal but flatly rejected meeting
U.S. President Joe Biden, even if Washington removed all
sanctions.
U.S. crude stocks were expected to have dropped for a fifth
consecutive week last week, with distillate and gasoline stocks
both rising, a preliminary Reuters poll showed on Monday.
(Additional reporting by Yuka Obayashi in Tokyo; editing by
Barbara Lewis and David Goodman)