Oil rises above US crude stocks, OPEC + optimism

© Reuters.

From Gina Lee

Investing.com – Oil was on the up in Asia on Wednesday morning as investors welcomed a decline in US crude oil inventories. However, the rising number of COVID-19 cases and the recent hurdle in the COVID-19 vaccination program sparked concerns about fuel demand.

rose 0.66% to $ 64.09 as of 10:13 p.m. CET (2:13 p.m. GMT) and rose 0.68% to $ 60.59, exceeding the $ 60 mark.

The US had a draw of 3.608 million barrels in the week ending April 9. Investing.com’s forecasts had forecast a draw of 2.15 million barrels, compared to a draw of 2.618 barrels the previous week.

is due later in the day, which is expected to confirm a third consecutive weekly drawing.

The Organization of Petroleum Exporting Countries and Allies (OPEC +), released on Tuesday, has boosted its consumption forecast for 2021 and forecast that the market recovery will continue in the coming months.

The report added that increased consumption should help keep inventory levels low, even as the cartel prepares to ease production restrictions from May onwards.

“It was a welcome prediction from the market, concerned about the impact of the ongoing COVID-19 on demand,” analysts at ANZ Research said in a note.

However, COVID-19 could still have the final say as some countries struggle to contain new waves of the virus. India, the third largest oil importer in the world, continues to see a large number of cases in its second wave.

The global rollout of COVID-19 vaccines has also taken a hit on the streets as the U.S. Centers for Disease Control and Prevention and FDA paused on Tuesday from taking advantage of Johnson & Johnson’s (NYSE: ) have inserted. The couple stopped the rollout after six women who received it developed a rare and severe form of blood clotting and the break is expected to last a few days.

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