Connect with us

Hi, what are you looking for?

Commodities & Futures

Oil Up as Fuel Demand Recovery Outlook Brightens, U.S. Crude Oil Supplies Fall

Commodities34 minutes ago (Apr 06, 2021 11:36PM ET)

(C) Reuters.

By Gina Lee

Investing.com – Oil was up Wednesday morning in Asia, inching up over prospects for stronger global economic growth as the COVID-19 vaccine rollout widens and crude oil inventories in the U.S., the biggest fuel consumer globally, fell.

Brent oil futures edged up 0.16% to $62.84 by 11:28 PM ET (3:28 AM GMT) and WTI futures edged up 0.15% to $59.42.

“Optimism on the global economic outlook boosted sentiment in the crude oil market,” ANZ bank analysts said in a note.

Fuel demand recovery hopes were bolstered after February’s U.S. JOLTs job openings report, released on Tuesday, showed that vacancies rose to a two-year high of 7.367 million. The report also said that hiring also recorded its biggest gain in nine months.

The data follows China’s Caixin services Purchasing Managers Index, whose March reading was 54.3. Chinese inflation data, including the Consumer Price and Producer Price indexes, is due on Friday.

The IMF also said that global growth of 6% in 2021 could be attainable as it opened its 2021 spring meetings on Apr. 5. The figure is the strongest expansion in at least four decades, and attributable to unprecedented public spending to fight COVID-19, primarily by the U.S. The meetings, co-hosted with the World Bank, will continue virtually until Apr. 11.

Meanwhile, U.S. President Joe Biden moved up the COVID-19 vaccine eligibility target for all American adults to Apr. 19, widening the vaccine rollout and further boosting fuel demand recovery hopes.

On the supply front, U.S. crude oil supply data from the American Petroleum Institute showed a draw of 2.618 million barrels for the week ending Apr. 2. Forecasts prepared by Investing.com predicted a 1.325-million-barrel draw, while a 3.91-million-barrel build was reported during the previous week.

U.S. oil production is also forecast to fall by 270,000 barrels per day (bpd) in 2021 to 11.04 million bpd, the U.S. Energy Information Administration (EIA) said on Tuesday. The forecast is a steeper decline than the previous monthly forecast for a drop of 160,000 bpd.

Crude oil supply data from the EIA is due later in the day.

Meanwhile, Iran held ‘constructive’ talks with world powers on Tuesday, where it agreed to form working groups to discuss potentially reviving the 2015 nuclear deal. The revival could lead to the U.S. lifting sanctions on Iran’s energy sector, in turn increasing the global oil supply.

Oil Up as Fuel Demand Recovery Outlook Brightens, U.S. Crude Oil Supplies Fall

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved