Oil prices rise on economic outlook, drawdown in fuel stocks

Crude oil prices rose on Thursday as vaccine rollouts bolstered the economic outlook and US fuel stocks fell sharply, although gains were capped by a surge in crude oil inventories after last month’s Texas storm.

Brent crude oil futures for May rose 40 cents, or 0.6%, to $68.30 a barrel by 0105 GMT, while US West Texas Intermediate crude for April was up 48 cents, or 0.7%, at $64.92.

“Gasoline stocks fell… (which) provided the bullish offset and eventually sent oil prices higher on the strong demand for end products, hence an economic recovery,” said Stephen Innes, Chief Global Markets Strategist at Axi.

“Given the powerful signals from the US re-opening narrative, it still suggests that the path of least resistance for oil prices is higher.”