Investors have also become increasingly confident in stronger global economic growth as COVID-19 vaccinations are continuously rolled out.
Brent crude futures for June rose by 34 cents, or 0.5%, to $63.08 a barrel by 02:23 WAT while U.S. West Texas Intermediate crude for May was up 32 cents, or 0.5%, to $59.65.
The International Monetary Fund (IMF) said on Tuesday that unprecedented public spending to fight COVID-19, primarily by the United States, would push global growth to 6 percent this year, a rate unseen since the 1970s.
Market sources citing American Petroleum Institute (API) figures disclosed that U.S. crude oil stockpiles fell last week, while fuel inventories rose. Crude inventories fell by 2.6 million barrels in the week ended April 2, the sources said, citing the API data. Forecasters had predicted a drop of just 1.4 million barrels.
According to a statement by the Energy Information Administration (EIA) on Tuesday, U.S. oil production is expected to experience a steeper decline than its previous monthly forecast of 160,000 barrels per day (bpd) drop to 270,000 bpd in 2021 to 11.04 million bpd.
In other news, Iran and world powers held what they described as “constructive” talks on Tuesday and agreed to form working groups to discuss potentially reviving the 2015 nuclear deal that could lead to Washington lifting sanctions on Iran’s energy sector and increasing oil supply.