Oil Up Over U.S. Crude Stockpiles Decrease, OPEC+ Optimism

imageCommodities1 hour ago (Apr 13, 2021 10:19PM ET)

(C) Reuters.

By Gina Lee – Oil was up Wednesday morning in Asia, as investors cheered a decline in U.S. crude oil supplies. Rising numbers of COVID-19 cases and the latest hurdle in the COVID-19 vaccine program triggered fuel demand worries, however.

Brent oil futures gained 0.66% to $64.09 by 10:13 PM ET (2:13 AM GMT) and WTI futures rose 0.68% to $60.59, surpassing the $60 mark.

U.S. crude oil supply data from the American Petroleum Institute showed a draw of 3.608 million barrels for the week ending Apr. 9. Forecasts prepared by had predicted a draw of 2.15 million barrels, while a 2.618-barrel-draw was recorded during the previous week.

Supply data from the U.S. Energy Information Administration is due later in the day, which is widely expected to confirm a third consecutive weekly draw.

The Organization of Petroleum Exporting Countries and allies (OPEC+)’s monthly report, released on Tuesday, boosted consumption forecast for 2021 and predicted the market recovery will continue in the coming months.

The report added that increasing consumption should help to keep stockpiles low, even as the cartel prepares to ease production curbs from May onwards.

“It was a welcome prognosis by the market, which had been fretting about the impact the ongoing COVID-19 was having on demand,” ANZ Research analysts said in a note.

COVID-19 could still have the last word, however, as some countries struggle to contain new waves of the virus. India, the third-largest oil importer globally, continues to see high numbers of cases in its second wave,

The global COVID-19 vaccine rollout has also hit a bump in the road, as the U.S. Centers for Disease Control and Prevention and FDA on Tuesday hit pause on the use of the Johnson & Johnson (NYSE:JNJ) offering. The pair halted the rollout after six women who received it developed a rare and severe form of blood clotting, and the pause is expected to last for a few days.

Oil Up Over U.S. Crude Stockpiles Decrease, OPEC+ Optimism

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.