05:12 AM EDT, 05/28/2024 (MT Newswires) -- Crude oil prices saw gains amid expectations of stronger demand due to the traditional start of the U.S. summer driving season, ANZ Bank said in a Tuesday note.

Brent crude rose 0.3% to US$83.33 per barrel and West Texas Intermediate crude jumped 1.7% to US$79/b at last look early Tuesday. Early signs indicate a relatively strong level of holiday travel, but gasoline consumption may be lower due to improved fuel efficiency and electric vehicles, the bank noted.

However, jet fuel demand may fill the gap as the number of travelers expected to fly this holiday weekend may be the highest in nearly 20 years, according to the American Automobile Association. Jet fuel demand has already hit its highest level since 2019 for this time of year, U.S. Energy Information Administration data showed.

Meanwhile, prices remain supported by rising tensions in the Middle East, ANZ Bank said. Besides the conflict in Rafah, Iran's stockpile of near bomb-grade uranium also rose 17% over the last three months, according to a UN nuclear watchdog.

The challenging backdrop is expected to make a decision by the Organization of the Petroleum Exporting Countries on oil production more difficult, according to the bank. The group is scheduled to meet on June 2. A Bloomberg survey showed 87% of traders and analysts expecting the group to extend voluntary output cuts.