Oil Prices Rise Due To The Prospects Of Achieving Stronger Global Economic Growth

Baghdad Oil prices rose today, Wednesday, due to the prospects of achieving stronger global economic growth, amid increasing vaccinations against the Coronavirus and a report on declining crude stocks in the United States, the largest consumer of fuel in the world.

Brent crude futures rose 34 cents, or 0.5 percent, to $ 63.08 a barrel, while US West Texas Intermediate crude for May rose 32 cents, or 0.5 percent, to $ 59.65.

Prices rebounded as data on Tuesday showed that jobs in the United States rose to their highest level in two years in February as employment increased. This came on the heels of previous data which showed that US service activity reached a record level in March, and the Chinese services sector showed the largest increase in sales in three months.

The International Monetary Fund said on Tuesday that unprecedented public spending on fighting COVID-19, particularly by the United States, will push global growth to 6% this year, a rate not seen since the 1970s.

US crude oil inventories have declined in the last week, while fuel inventories have risen, citing American Petroleum Institute (API) numbers ahead of government data on Wednesday.

The US Energy Information Administration said that oil production in the United States is expected to decline by 270,000 barrels per day in 2021 to 11.04 million barrels per day, sharply lower than its previous monthly forecast of a drop of 160,000 barrels per day.

Source: National Iraqi News Agency