Oil futures: Brent consolidates above $71/b, WTI hits 2.5yr high

London (Quantum Commodity Intelligence) – Crude oil futures maintained their upwards momentum in late-afternoon London trading Wednesday, as demand growth optimism met with a broad welcome to the OPEC+ producer group's decision to stay on the current path of gradual supply increases.

Brent futures for the front month (August) were trading at $71.14/barrel (1620 GMT), compared to Tuesday's settle of $70.25/b, an increase of 1.27%.

At the same time, July WTI was trading $68.60/b, up 1.31% from Tuesday's settle of $67.72/b.

The last time WTI traded above this level was in October 2018, according to Exchange data.

Ministers from the OPEC+ group of oil producers agreed Tuesday to stick with the current policy of already scheduled output increases in for June and July, but to defer any decision on August production until a later date.

The decision was widely anticipated with members of the 23-country group waiting for further clarity on a timetable for the possible lifting of Iranian sanctions.

"The question is whether or not OPEC+ will bring back more barrels in August/September," said Amrita Sen, chief oil analyst at Energy Aspects, speaking to CNBC.

"For now they're going to hold tight (OPEC+), they need to see what Iran does," she added, noting that the timeline for reaching a deal was slipping and could be further delayed by the Iranian elections and any subsequent change in government, particularly to a hardline regime.

Negotiations between Iran and the international community have been continuing in Vienna this week, but talks are expected to pause for at least another week with no deal in sight so far.