Crude oil futures ended sharply higher on Wednesday, buoyed by an upward revision in global oil demand forecast by the International Energy Agency (IEA).
Data showing a sharp drop in U.S. crude inventories in the week ended April 9 contributed as well to oil’s uptick.
West Texas Intermediate Crude oil futures for May ended up by $2.97 or about 4.9% at $63.15 a barrel, the highest settlement in about four weeks.
Brent crude oil futures were up $2.73 or 4.28% at $66.40 a barrel a little while ago.
The IEA has sharply raised its world oil demand estimate for 2021, pointing to further signs that the global economy is recovering faster than previously expected, particularly in the US and China. The agency expects oil demand to grow 230,000 barrels a day faster than previously forecast.
World oil demand is now expected to expand by 5.7 million b/d in 2021 to 96.7 million b/d, following a collapse of 8.7 million b/d last year, the IEA said.
Data released by Energy Information Administration (EIA) showed crude oil inventories in the U.S. dropped by 5.9 million barrels last week, compared with an expected draw of about 3.5 million barrels.
Gasoline inventories rose 300,00 barrels last week, while distillate stockpiles dropped by 2.1 million barrels.
The American Petroleum Institute (API) reported late Tuesday that crude oil stockpiles in the U.S. dropped by 3.6 million barrels last week.