Oil prices surge on prospect of a strong economy, US stockpile decline

Gulf Today Report 

Oil prices jumped on Wednesday on hope for stronger global economic growth as crude inventories in the United States fell and increased COVID-19 vaccinations.

Brent crude futures for June rose by 24 cents, or 0.4%, to $62.98 a barrel by 04:03 GMT while US West Texas Intermediate crude for May was up 20 cents, or 0.3%, to $59.53.

In a note, ANZ bank analysts said, "optimism on the global economic outlook boosted sentiment in the crude oil market."

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On Tuesday data indicated a rise in US jobs openings thereby boosting hope for strong economic recovery. Optimism on a wider rollout of vaccines also boosted prices.

US crude oil stockpiles fell more than expected in the previous week, while fuel inventories rose, according to three market sources.

Oil production in the US 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 steeper decline than its previous monthly forecast for a drop of 160,000 bpd.