By Sonali Paul MELBOURNE (Reuters) – Oil prices rose in early trading on Wednesday, adding to overnight gains, after industry data showed US oil inventories fell more than expected. and OPEC raised its outlook for oil demand. futures rose 28 cents, or 0.4%, to $ 63.95 a barrel at 0057 GMT, after rising 39 cents on Tuesday. US West Texas Intermediate (WTI) crude futures were similarly up 28 cents, or 0.5%, at $ 60.46 a barrel, adding to Tuesday’s rise of 48 cents. Oil price increases over the past week have been supported by signs of a strong economic recovery in China and the United States, but have been constrained by concerns about stagnating vaccine launches around the world and rising COVID-19 infections in India and Brazil. However, the Organization of the Petroleum Exporting Countries (OPEC) revised its forecast on Tuesday for growth in global oil demand this year, and now expects demand to rise by 5.95 million barrels per day (bpd) in 2021, 70,000 bpd more than its forecast. last month. You are betting on the pandemic to subside and travel hurdles to ease. “It was a welcome forecast from the market, which had been concerned about the impact the ongoing pandemic was having on demand,” analysts at ANZ Research said in a note. Further supporting the market on Wednesday, sources said data from the American Petroleum Institute showed crude stocks fell 3.6 million barrels in the week ending April 9, compared to estimates of a decline of roughly 2.9 million barrels of analysts polled by Reuters. [API/S] Traders are waiting to see if official inventory data from the US Energy Information Administration (EIA) on Wednesday agrees with that view. Market gains are limited to concerns about rising oil production in the United States and increased supply from Iran at a time when OPEC and its allies, together dubbed OPEC +, are poised to generate more. offer from May. “They may have to deal with the increase in the US supply,” ANZ analysts said. The EIA said this week that oil production from seven major shale formations is expected to increase by 13,000 bpd in May to 7.61 million bpd.
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