Oil prices rose sharply on Wednesday, following a drop in US stocks and stronger demand.
At 15:30 ET, WTI spot prices rose $ 2.70 a barrel, or 4.49% that day, to $ 62.88. Brent crude was trading at $ 66.37 a barrel, also up $ 2.70, or 4.24%.
In the long run, oil will end on Wednesday, with the highest level in March.
The significant price increase comes in the EIA reports on the reduction of US crude oil stocks, along with the higher prospects for oil demand from OPEC earlier this week and the International Energy Agency today.
In Tuesday’s monthly report on the oil market, OPEC raised its world oil demand outlook in 2021 by 190,000 bpd. Today, the IEA increased its global oil demand outlook by 230,000 from its previous report. Taken together with the EIA report on 5.9 million barrels of crude stocks, strong economic data in China and rising geopolitical tensions in Russia / Ukraine and Israel / Iran, overall sentiment in the oil market is particularly optimistic. , even though US gross stocks are still above the five-year average for this time of year, at 492.4 million barrels.
According to OPEC, global oil demand in 2021 is now expected to average 96.46 million bpd. The IEA now estimates that global oil demand will average 96.7 million bpd, it said in its April report released on Wednesday, based on improved economic forecasts and prospects for accelerating vaccination programs.
At 16:30, ED, the May 2021 futures contract traded hands at $ 62.94, up from $ 60.18 previously. For WTI and Brent, prices for first month contract settlements are the highest since March 17.
By Julianne Geiger for Oilprice.com
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