The West Texas Intermediate for July delivery gained 1.26 U.S. dollars to settle at 38.38 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery rose 1.24 dollars to close at 40.96 dollars a barrel on the London ICE Futures Exchange.
In a closely-watched monthly report released Tuesday, the IEA forecast oil demand at 91.7 million barrels a day (b/d) in 2020, 0.5 million b/d higher than its estimate in May, "due to stronger than expected deliveries during the Covid-19 lockdown."
"In China, oil demand recovered fast in March-April and India's demand rose sharply in May," the IEA noted in the report.
Oil prices also found some support from major crude producers' latest pact on output curbs.
Earlier this month, the Organization of the Petroleum Exporting Countries and its allies led by Russia, known as OPEC+, agreed to extend the historic 9.7 million b/d production cut till the end of July.