2021.04.1409:56:00UTC+00Oil Extends Gains On Drawdown In US Stocks

Oil prices rose sharply on Wednesday to extend gains from the previous session on signs of inventory drawdown and after OPEC raised its forecast for growth in world oil demand this year.

Brent crude for June settlement jumped 1.8 percent to $64.81 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 1.8 percent at $61.26 per barrel. Prices remained supported after the OPEC raised its demand forecast by 190,000 barrels a day from its March estimate.

The group said in its monthly report that it expects consumption to average 96.46 million barrels a day this year on the back of economic stimulus programs and a further easing of lockdown measures.

Meanwhile, industry data showed U.S. oil inventories declined more than expected.

The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 3.6 million barrels in the week ended April 9, compared with estimates for a decline of about 2.9 million barrels for the week.

As optimism grows over economic recovery in China and the United States, investors shrugged off concerns over stalled vaccine rollouts worldwide and soaring Covid-19 infections in India and Brazil.