Oil held near its highest this month, amid risk-on sentiment in global markets that has helped push crude up recently.

Brent edged down slightly to trade near US$84 a barrel, after touching the highest since late May on Monday. Equity markets have been on a tear, with the S&P 500 hitting its 30th record this year, aiding crude in recent sessions. Key timespreads have also been indicating a tightening oil market.

Oil has advanced this month, paring a quarterly drop, as OPEC+ agreed to extend supply cuts, with any subsequent decision to return barrels dependent on market conditions. Demand in Asia appears a touch soft, with signs of lower gasoline consumption in India, and slower Chinese refining activity. In addition, data from China on Monday saw industrial activity expanding less than expected.

“I’m comfortable being bullish for Q3 still,” said Aldo Spanjer, a senior commodities strategist at BNP Paribas SA. “While June looks weak, I think demand comes up for diesel, gasoline and particularly jet. That’s a pretty strong demand increase over the next two to three months.”

Key timespreads have leaped in recent sessions, a sign that some of the market’s recent weakness could be turning. Brent’s prompt spread, which gauges nearby strength in physical markets, closed at the strongest level since April on Monday.

Prices:

• Brent for August settlement eased down 0.4% to $83.89 a barrel at 10:08 a.m. in London
• WTI for July delivery was 0.5% lower at $79.97 a barrel