Oil climbs on stronger economic growth, U.S. inventories decline

Oil prices rose on Wednesday on prospects for stronger global economic recovery amid speedy vaccine rollouts and news that U.S. crude inventories dropped.

Brent crude futures for June delivery climbed by 0.5%, or 34 cents, at $63.08 per barrel. U.S. West Texas Intermediate crude for May contract gained 0.5%, or 32 cents, at $59.65 per barrel.

Prices were supported by data that showed U.S. job openings climbed to a two-year high in February while hiring surged. This came after U.S. services activity data showed a record high in March, while the Chinese service sector climbed sharply in sales in three months. 

U.S. crude oil inventories dropped last week, while fuel stockpiles rose. Crude stocks slid by 2.6 million barrels in the week ended April 2, contrary to analysts’ expectations for a 1.4-million-barrel drop.

U.S. oil output is anticipated to drop by 270,000 bpd to 11.04 million bpd in 2021, significantly larger than the initial forecast for a 160,000-bpd decline.