Crude Prices Rise on US Stockpile Draw

Crude Prices Rise on US Stockpile Draw
Crude Prices Rise on US Stockpile Draw

Oil prices edged higher on Wednesday on the prospects for stronger global economic growth amid a report that crude inventories in the United States, the world’s biggest fuel consumer, fell.
But optimism about talks between the United States and Iran over Iran’s nuclear program and an impending increase in supply by major oil producers capped gains.
Brent crude futures for June rose by 16 cents, or 0.3%, to $62.90 a barrel while US West Texas Intermediate crude for May was up 14 cents, or 0.2%, to $59.47, CNBC reported.
“Optimism on the global economic outlook boosted sentiment in the crude oil market,” analysts from ANZ bank wrote in a note on Wednesday.
Prices were buoyed as data on Tuesday showed US job openings rose to a two-year high in February while hiring picked up. This followed earlier data showing improvement in the services sectors in the U.S. and China.
The International Monetary Fund said on Tuesday unprecedented public spending to fight Covid-19 would push global growth to 6% this year, a rate unseen since the 1970s.
US crude oil stockpiles fell more than expected in the week ended April 2, while fuel inventories rose, according to three market sources, citing American Petroleum Institute figures ahead of government data on Wednesday.
Oil production in the US is expected to fall by 270,000 barrels per day in 2021 to 11.04 million bpd, the Energy Information Administration said on Tuesday, a steeper decline than its previous monthly forecast for a drop of 160,000 bpd.
Iran and world powers held what they described as “constructive” talks on Tuesday and agreed to form working groups to discuss potentially reviving the 2015 nuclear deal that could lead to Washington lifting sanctions on Iran’s energy sector and increasing oil supply.

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