The US crude inventories fell by more than expected. Credit: David Mark / Pixabay.

Crude oil prices have edged up on hopes of stronger economic growth as Covid-19 vaccinations gather momentum across the world and reports that US crude inventories have reduced.

However, gains have been capped by the impending supply boost by major oil producers and optimism over talks between Iran and the US over the 2015 nuclear deal.

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Brent crude futures for June edged higher by $0.24, or 0.4%, to reach $62.98 a barrel while US West Texas Intermediate crude for May increased by $0.20, or 0.3%, to reach $59.53, reported Reuters.

ANZ bank analysts were cited by the news agency as saying in a note: “Optimism on the global economic outlook boosted sentiment in the crude oil market.”

Oil prices were boosted as data on 6 April showed increased job openings in February to a two-year high in the US, followed by earlier data that revealed improvement in the services sectors in Canada and the US.

Added support came from an announcement by US President Joe Biden that all American adults are eligible for the Covid-19 vaccine by 19 April.

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On the other hand, crude oil stockpiles in the US dropped more than expected in the week ending 2 April while fuel inventories increased, three market sources said citing American Petroleum Institute (API) figures.

On 6 April, a meeting was held between Iran and world powers where they agreed to discuss ways to potentially revive the nuclear deal signed in 2015.

The move enables the US to lift sanctions on the energy sector in Iran, increasing oil supply.

Earlier this week, global crude oil prices dropped after the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, agreed to ease oil output cuts from gradually from May 2021.

OANDA senior market analyst Edward Moya was cited by the news agency as saying: “Crude prices seem poised to consolidate as energy traders need to see how exactly OPEC+ follows through with their plan to boost output, and if the EU will near virus immunity by the end of June.”