Oil rebounds from one-week low

Oil prices rose on Wednesday, for the first time in 4 days and rebounded from a 1-week low, thanks to hopes about the recovery in global demand as Covid-19 vaccination accelerates around the world, but today's gains are being ebbed by supply concerns and growing odds that the OPEC-Plus collation might agree this week to increase output during April, after an unexpected rise in the US crude inventories.

US crude rose 2.1% to $60.80 a barrel, after opening at $59.55, and hit a low and the lowest since February 22 at $59.27, and Brent crude rose nearly 2.3% to $63.86 a barrel, after opening at $62.44, and hit a low of $62.40.

US crude lost 1.3% yesterday, and Brent crude futures fell 1.25%, in their third straight daily loss on growing odds that the OPEC-Plus collation.

Oil prices are lifted by hopes about the a recovery in global demand as Covid-19 vaccination accelerates around the world.

The OPEC-Plus Joint Ministerial Committee will meet on Wednesday to review the global output cut agreement and the latest developments in the global scene, amid growing odds that the collation might agree to increase output during April due to an expected supply deficit during the first quarter of 2021.

Reuters reported that OPEC expects a drop in global oil inventories by about 400 million barrels this year.

Saudi Arabia also announced a voluntary output cut of about one million barrels per day during February and March to balance the market, but Riyadh's decision about the supply levels during April remains unclear.

The American Petroleum Institute (API) revealed yesterday in preliminary data that the US crude inventories rose 7.4 million barrels during the week ending February 26, missing forecasts of a drop by 0.9 million barrels.

While the US Energy Information Administration's official data will be released later today, amid forecasts for inventories to rise by 1.3 million barrels.