Oil prices rise on stronger economic outlook and US reserves.

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© Reuters. Views of the Total Grandpuits Oil Refinery

By Jessica Jaganathan SINGAPORE (Reuters) – Oil prices rose on Wednesday on prospects for stronger global economic growth amid a surge in COVID-19 vaccines and a report that crude inventories in the United States, the the world’s largest fuel consumer, fell. June futures were up 34 cents, or 0.5%, to $ 63.08 a barrel at 0123 GMT, while West Texas Intermediate crude in May was up 32 cents, or 0.5%, to $ 59.65. “Optimism about the global economic outlook boosted confidence in the crude oil market,” ANZ bank analysts wrote in a note on Wednesday. Prices stayed afloat as data on Tuesday showed job openings in the United States surged to a two-year high in February, while hiring accelerated. This followed previous data showing that US services activity hit a record in March and that China’s services sector showed the steepest increase in sales in three months. The International Monetary Fund said Tuesday that unprecedented public spending to combat COVID-19, mainly by the United States, would boost global growth to 6% this year, a rate not seen since the 1970s. Optimism about A broader vaccine launch also boosted prices, as US President Joe Biden increased the COVID-19 vaccine eligibility target for all American adults through April 19. Oil reserves fell in the last week, while fuel inventories increased, according to three markets. sources, citing figures from the American Petroleum Institute (API) ahead of government data on Wednesday. Crude inventories fell 2.6 million barrels in the week ending April 2, the sources said, citing API data. Forecasters had forecast a drop of just 1.4 million barrels. Oil production in the U.S. is expected to fall by 270,000 barrels per day (bpd) in 2021 to 11.04 million bpd, the Energy Information Administration (EIA) said on Tuesday, a drop steeper than its previous monthly forecast of a 160,000 bpd drop. Iran and world powers held what they described as “constructive” talks on Tuesday and agreed to form working groups to discuss possible revival of the 2015 nuclear deal that could lead Washington to lift sanctions on Iran’s energy sector and increase supply. of oil.

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