U.S. crude stockpiles fell last week, but rising product inventories continue to suggest the demand outlook remains far from robust despite signs the global recovery remains intact.
West Texas Intermediate, the benchmark for U.S. crude prices, rose $0.63 a barrel on the news, after settling up $0.68 at $59.33 a barrel.
U.S. crude inventories fell by 2.6 million barrels for the week ended April 1, according to an estimate released Tuesday by the American Petroleum Institute. That compared with a build of 3.9 million barrels reported by the API for the previous week.
The API also showed that gasoline inventories increased by about 4.5 million last week, compared with a 6 million draw in the prior week, and distillate stocks rose by about 2.8 million barrels.
Oil prices were boosted intraday as investors cheered news on the global recovery and ongoing signs of reopening progress in the U.S.
The International Monetary Fund lifted its global growth forecast to 6% in 2021, up from its prior forecast of 5.5%, citing the ongoing progress of the vaccine deployment worldwide. The IMF forecast the euro zone to grow 4.4% in 2021. The faster roll out of vaccines in the U.S. continues to spur the reopening process, with California Governor Gavin Newsom saying the state will lift most restrictions by June 15.
The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies fell by about 1.44 million barrels last week. Investing.com