The US crude inventories fell by more than expected. Credit: David Mark / Pixabay.

Crude oil prices have edged up on hopes of stronger economic growth as Covid-19 vaccinations gather momentum across the world and reports that US crude inventories have reduced.

However, gains have been capped by the impending supply boost by major oil producers and optimism over talks between Iran and the US over the 2015 nuclear deal.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Brent crude futures for June edged higher by $0.24, or 0.4%, to reach $62.98 a barrel while US West Texas Intermediate crude for May increased by $0.20, or 0.3%, to reach $59.53, reported Reuters.

ANZ bank analysts were cited by the news agency as saying in a note: “Optimism on the global economic outlook boosted sentiment in the crude oil market.”

Oil prices were boosted as data on 6 April showed increased job openings in February to a two-year high in the US, followed by earlier data that revealed improvement in the services sectors in Canada and the US.

Added support came from an announcement by US President Joe Biden that all American adults are eligible for the Covid-19 vaccine by 19 April.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

On the other hand, crude oil stockpiles in the US dropped more than expected in the week ending 2 April while fuel inventories increased, three market sources said citing American Petroleum Institute (API) figures.

On 6 April, a meeting was held between Iran and world powers where they agreed to discuss ways to potentially revive the nuclear deal signed in 2015.

The move enables the US to lift sanctions on the energy sector in Iran, increasing oil supply.

Earlier this week, global crude oil prices dropped after the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, agreed to ease oil output cuts from gradually from May 2021.

OANDA senior market analyst Edward Moya was cited by the news agency as saying: “Crude prices seem poised to consolidate as energy traders need to see how exactly OPEC+ follows through with their plan to boost output, and if the EU will near virus immunity by the end of June.”