Oil Rises on Stronger Economic Outlook, U.S. Stockpile Draw


Oil prices edged higher on Wednesday on the prospects for stronger global economic growth amid increased COVID19 vaccinations and a report that crude inventories in the United States, the worlds biggest fuel consumer, fell.

But optimism about talks between the United States and Iran over Irans nuclear programme 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 by 0657 GMT while U.S. West Texas Intermediate crude for May was up 14 cents, or 0.2, to 59.47.

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 U.S. job openings rose to a twoyear 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 COVID19 would push global growth to 6 this year, a rate unseen since the 1970s.

Optimism on a wider rollout of vaccines also boosted prices with U.S. President Joe Biden moving up the COVID19 vaccine eligibility target for all American adults to April 19.

U.S. 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 API figures ahead of government data on Wednesday.



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