(Bloomberg) -- Oil held a gain above $59 a barrel as prospects for faster, vaccine-aided economic growth boosted the outlook for energy demand.
West Texas Intermediate was steady after rising 1.2% on Tuesday. With vaccines being rolled out at a faster pace, the International Monetary Fund upgraded its global growth forecast to 6% this year. An industry report, meanwhile, showed a decline in American crude stockpiles but a gain in gasoline holdings.
Crude has swung around $60 a barrel in the last few weeks as investors weigh prospects for increased demand against the impact of fresh lockdowns, especially in Europe. Last week, the Organization of Petroleum Exporting Countries and its allies agreed to ease output curbs, betting the global market can absorb the additional supply. Recent U.S. data, including payrolls figures, have pointed to a strong recovery in the world’s biggest economy.
“The market is caught between the competing narratives of U.S. growth and Europe’s catch-up recovery, versus the uncertain supply conditions,” said Stephen Innes, chief global market strategist at Axi. “Liquidity is still low across all markets post-Easter, which may be exaggerating moves.”