West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, rallied almost +5% on Wednesday marking its highest finish in four weeks.
The International Energy Agency raised its forecast for global oil demand this year, and the Energy Information Administration reported a 5.9million-barrel fall in U.S. crude inventories for the week ended April 9.
This was compared with an inventory draw of 3.5 million barrels for the previous week.
(WTI) traded near $63.50 a barrel after closing higher for the third day, the longest run of gains in more than a month.
The bullish data followed upbeat assessments by OPEC and the International Energy Agency.
However, the market will soon have to deal with more supply. OPEC+ and U.S. producers are set to start adding extra barrels from May.
Another wildcard is Iran, which is seeking to revive a 2015 nuclear deal and have U.S. sanctions removed to lift crude exports, but progress on that remains uncertain.
Meanwhile, the global recovery from the pandemic remains uncertain.
The U.S. and China are seeing higher fuel consumption rates, but India is renewing partial lockdowns amid record virus cases and a shortage of vaccines.
South Korea and Japan are also witnessing rising infections.
Due to the upsides break, the technical assessment remains neutral.