SULAIMANI (ESTA) — Oil prices edged higher on Wednesday on the prospects for stronger global economic growth amid increased COVID-19 vaccinations and a report that crude inventories in the United States fell.
Brent crude futures for June rose by 14 cents to $62.88 a barrel by 0617 GMT while U.S. West Texas Intermediate crude for May was up 13 cents to $59.46.
“Optimism on the global economic outlook boosted sentiment in the crude oil market,” analysts from ANZ bank wrote in a note on Wednesday, according to Reuters.
Prices were buoyed as data on Tuesday showed U.S. job openings rose to a two-year high in February while hiring picked up, Reuters reported.
It followed earlier data showing U.S. services activity touching a record high in March and China’s service sector showing the sharpest increase in sales in three months.
Optimism on a wider rollout of vaccines also boosted prices with U.S. President Joe Biden moving up the COVID-19 vaccine eligibility target for all American adults to April 19, Reuters said.
U.S. crude oil stockpiles fell in the most recent week, while fuel inventories rose, according to three market sources, citing American Petroleum Institute (API) figures ahead of government data on Wednesday.
Crude inventories fell by 2.6 million barrels in the week ended April 2, the sources said, citing the API data. Forecasters had predicted a drop of just 1.4 million barrels.
