Oil climbs with increase in U.S. fuel demand

The success in COVID-19 vaccine drive in the United States has propelled fuel demand ahead of the summer driving season that will see commencement in the weekend. Authorities American Petroleum Institute and the U.S. Energy Information Administration disclosed draws in the U.S. crude oil supplies within the earlier chapters of the week.

In line with this, Brent oil futures climbed 0.40% to $69.48 in 10:07 PM ET (2:07 AM GMT), nearing the $70 mark. WTI futures gained 0.54% to $67.21, after settling at its highest close since October 2018.

In May, a report on oil would be lodged that would stipulate the monthly gain for the month with fuel demand revitalized across a number of countries like the United States, Europe, and China that continue to manifest economic recovery. Sweetening the pot, the jobless claims in the U.S. had dropped to a new 14-month low of 406,000 according to another public data.

Investors continue to monitor the negotiations between Iran and other nations that are set in Vienna. Ideally, the talks are projected into reviving the 2015 nuclear deal, with the U.S. lifting its present sanctions against Iran. Should these be the result, the country would be adding between 500,000 barrels a day (bpd) and 1.5 million bpd of crude and condensate to the market.

On June 1st, OPEC+ ministers would be meeting to ratify an 840,000 bpd increase which is set for July. This convocation would also address the third and final phase of a plan to revive around 2 million barrels of global production within the summer season.