Brent crude futures were at $67.77 a barrel, up 15c or 0.2% from their last close.
The industry-funded American Petroleum Institute is scheduled to release its stockpiles data on Tuesday. "We expect to see growth near 2 million barrels per day in 2018 and 1.3 million barrels per day in 2019". "We do not think that prices below $65 per barrel are sustainable into the medium term". Output curbs by the Opec and allied suppliers have buoyed prices, with producers promising to continue the curbs for all of 2018.
"Production cuts and demand are continuing to rebalance the market".
Oil in NY has traded above $60 a barrel and the global benchmark Brent has held above $66 since December as the Organization of Petroleum Exporting Countries (Opec) and allied suppliers capped output.
There is no sign yet that OPEC is prepared to relax its supply restraint.
OPEC members not keen on Brent prices above $60
"The U.S. oil price is now into a range that is anticipated to attract increased shale oil production", said Ric Spooner, chief market analyst at CMC Markets in Sydney. However, Saudi Arabia, OPEC's top producer, wants to see crude above $60 to boost the valuation of its national oil company Aramco before an initial public offering of shares this year and to reduce the gap in its state budget, Saudi sources have said.
Nationwide output will average 10.85 million barrels a day next year and 10.27 million this year, both surpassing the prior record of 9.6 million pumped in 1970, the Energy Information Administration said in its monthly Short-Term Energy Outlook, which included the first estimates for 2019.
"I am now on the lookout for bearish technical patterns to emerge on oil prices as I believe they will struggle to go north of $65-$75 per barrel given the above fundamental consideration", said Fawad Razaqzada, technical analyst for Forex.com.
Oil prices firmed on Monday after a dip in the number of USA rigs drilling for new production, with crude holding just below the highs of almost three years reached last week.
Traders said the gains were due to a slight decline in the number of USA rigs drilling for new production. "But for now, the bullish trend remains intact as prices remain above key supports".