Crude oil prices are up sharply Wednesday morning amid optimism about strong energy demand after OPEC+ said it expects demand to pick up.
Oil is also supported by a report released by the American Petroleum Institute (API) Tuesday evening that crude stockpiles in the U.S. dropped by about 8.2 million barrels last week.
Official crude inventory data from U.S. Energy Information Administration (EIA) is due later this morning.
West Texas Intermediate Crude oil futures for August are up $1.02 or 1.4% at $74.00 a barrel.
The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) said on Tuesday that oil demand will likely increase by 6 million barrels per day in 2021.
Quoting an internal OPEC report, Reuters highlights that the oil market could return to a glut after the group is expected to unravel oil production cuts of under 6 million barrels per day by April 22.
Traders now await the outcome of the OPEC+ meet that will decide on future policy tomorrow.