Demand for gasoline remained robust in recent weeks, helped by easing quarantine restrictions in large U.S. states and progress in vaccination efforts. Recent EIA data showed gasoline supplied to the U.S. market reached a fresh six-month high 8.891 million bpd during the week ended March 26.
Internationally, Eurozone’s businesses activity unexpectedly improved in the final weeks of March to a reading of 53.2, as a renewed upturn in the service sector coincided with record growth in manufacturing production. Germany’s service sector grew for the first time in six months in March, helped by improved consumer confidence and some progress in vaccination efforts. The pace of job creation in the German service sector gathered pace, though remained modest compared to the trend seen prior to the pandemic.
On Tuesday, the International Monetary Fund boosted its global economic growth projection to 6% this year, powered by progress in vaccination efforts and unprecedented fiscal stimulus measures in some large economies. In the United States, economic growth is seen at multi-decade high 6.4% this year before moderating to 3.5% in 2022.
“Even with high uncertainty about the path of the pandemic, a way out of this health and economic crisis is increasingly visible,” IMF chief economist Gita Gopinath said in their latest World Economic Outlook report.
Nonetheless, the outlook offers caution over the daunting challenges related to divergences in the speed of the recovery and trajectory of the pandemic among the different parts of the global economy.
In early trade, NYMEX May West Texas Intermediate futures advanced 52 cents to trade just below $60 bbl at $59.87 bbl and the June Brent contract on ICE gained 66 cents to near $63.40 bbl. NYMEX May ULSD futures added 1.40 cents to near $1.8077 gallon and NYMEX May RBOB futures edged 0.96 cent higher to $1.9756 gallon.
Liubov Georges can be reached at firstname.lastname@example.org
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