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Oil rises amid global economic recovery

Oil rises amid global economic recovery

On April 7, the world benchmark Brent crude oil increased to improve the outlook for the global economy. However, US crude oil was devoted to increasing gasoline inventories amid concerns that the new COVID-19 outbreak could undermine the global recovery in fuel demand.

Brent crude oil futures surged 0.67%, worth 42 cents and settled at $ 63.16 a barrel. in the meantime, US West Texas Intermediate Crude Oil We earned 44 cents (equivalent to 0.7%), reaching $ 59.77 per barrel.

US crude oil inventories fell 3.5 million barrels last week, according to the Energy Intelligence Agency. However, gasoline inventories increased by 4 million barrels. Importantly, a drop in 221,000 barrels of gasoline was expected.

In addition, oil prices have found support from the Federal Reserve Board’s signs that policy makers are optimistic about the overall economic outlook.

On Tuesday, the International Monetary Fund announced that unprecedented public spending on fighting COVID-19 will boost global growth to 6% this year. This is a rate not seen since the 1970s. In addition, it helped forecast fuel demand and supported prices.

Still, the intense coronavirus infection in the Americas, which accounted for more than half of all COVID-related deaths last week, prevented the rate from rising.

Oil prices fell earlier this week after the Organization of Petroleum Exporting Countries (OPEC) and its allies agreed to ease oil production cuts from May.

The global economy is expected to grow 6.2% in 2021

According to Oxford Economics estimates used by the EIA for predictive modeling, global economic growth is projected to be 6.2% in 2021, an increase of 0.4 points from the March STEO.

In 2022, global oil demand is expected to increase by another 3.7 million BPD in 2021 to exceed pre-pandemic levels from 2019. Global oil consumption is expected to average 101.3 million BPD in 2022, according to the latest EIA estimates.

Global oil demand growth in 2021 increased by 200,000 BPD, but the 2022 growth forecast has been revised downward by 100,000 BPD from the March forecast. Surprisingly, it recorded demand growth of 5.3 million BPD this year and 3.8 million BPD in 2022.

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Oil rises amid global economic recovery Oil rises amid global economic recovery

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