Oil holds gains with U.S. projecting only modest production growth

Oil rose above US$81 a barrel, buoyed by general risk-on sentiment, as the first of a spate of supply-and-demand projections scheduled this week forecast a modest rise in U.S. production.

Crude held its gains even after a U.S. Energy Information Administration report Tuesday estimated supply will exceed demand in the next two years, despite the unexpected production cut by OPEC+.

The Organization of Petroleum Exporting Countries and the International Energy Agency also are scheduled to issue monthly reports later this week.