SINGAPORE, July 1 Reuters Oil prices climbed on Monday, supported by forecasts of a supply deficit stemming from peak summer fuel consumption and OPEC cuts in the third quarter, although global economic headwinds and rising nonOPEC output capped gains.

Brent crude futures rose 53 cents, or 0.6, to 85.53 a barrel by 0729 GMT, while U.S. West Texas Intermediate crude futures were at 82.05 a barrel, up 51 cents, or 0.6.

Both contracts gained around 6 in June, with Brent settling above 85 a barrel in the past two weeks, after the Organization of the Petroleum Exporting Countries OPEC and their allies, a group known as OPEC, extended most of its deep oil output cuts well into 2025.

That led analysts to forecast supply deficits in the third quarter as transportation and airconditioning demand during summer draw down fuel stockpiles.

On Friday, the Energy Information Administration39;s EIA reported that oil production and demand for major products rose to a fourmonth high in April, supporting prices.

We continue to hold a supportive view towards Brent, although there are concerns around demand, such as U.S. gasoline demand and Chinese apparent demand, ING analysts led by Warren Patterson said in a note.

Factory activity among smaller Chinese manufacturers grew at the fastest pace since 2021 due to overseas orders, a private index showed, even as a broader survey indicated weak domestic demand and trade frictions had led to another industrial sector contraction. China is…