# Oil prices get a lift from China data as OPEC report suggests an uptick in demand

However, concerns about a slowdown in the rollout of the COVID vaccine, including a call for an immediate pause in the rollout of the Johnson & Johnson
JNJ,
-1.22%
one-shot vaccine, has raised some concerns about how quickly the U.S. economy will bounce back from the pandemic.

“The implications of the J&J pause aren’t being seen in crude yet,” said Arnim Holzer, macro and correlation defense strategist with EAB Investment Group, in market commentary. “This may be because the European Covid complications have already muted the price pressures.”

In Tuesday dealings, West Texas Intermediate crude for May delivery
CLK21,
+1.12%

CL.1,
+1.12%
rose 60 cents, or 1%, to $60.30 a barrel on the New York Mercantile Exchange.

Global benchmark June Brent crude
BRN00,
+0.31%

BRNM21,
+0.31%
advanced 59 cents, or 0.9%, at $63.87 a barrel on ICE Futures Europe.

In a monthly report Tuesday, the Organization of the Petroleum Exporting Countries said it expects the bulk of consumption of energy products to pick up in the second half of 2021, after fresh coronavirus outbreaks result in fitful economic recoveries in many parts of the world in the next few months.

“The year started with new waves of COVID-19 infections, necessitating renewed lockdown measures in many OECD economies. Therefore, the bulk of consumption growth is expected to take place in 2Q21 and 3Q21,” the report read.

OPEC increased its 2021 global oil demand forecast by 100,000 barrels a day from its previous expectations. It expects global oil demand to climb by about 6 million barrels per day to reach 96.5 million barrels per day this year. OPEC also raised its forecast for global economic growth to 5.4% from 5.1%.

The “upward revision mainly takes into account a stronger economic rebound than assumed last month…supported by stimulus programmes and a further relaxation in COVID-19 measures, amid an accelerated vaccination rollout,” the report said.

Oil prices had seen an early bump Tuesday after data showed Chinese imports in U.S. dollar terms rose 38.1% in March from a year ago, exceeding the 23.3% increase analysts had forecast.

Geopolitical tensions also were helping support crude values. Oil futures finished higher on Monday, as reports that Yemen’s Iran-backed Houthi rebels attacked a Saudi oil facility lifted tensions in the oil-rich Middle East.

Weekly data on U.S. petroleum supplies from the Energy Information Administration will be released Wednesday, with most analysts expecting the government agency to report a decline in crude supplies.

On average, analysts forecast a fall of 2.9 million barrels in crude inventories for the week ended April 9, according to a survey conducted by S&P Global Platts. They also expect a fall of 200,000 barrels for gasoline stockpiles and an increase of 700,000 barrels in distillate supplies.

On Nymex Tuesday, May gasoline
RBK21,
+0.51%
added 0.4% to $1.98 a gallon and May heating oil
HOK21,
+0.56%
tacked on 0.5% to $1.82 a gallon.

May natural gas
NGK21,
+2.62%
traded at $2.63 per million British thermal units, up 2.7% and on track to tally a fifth straight climb.

Prices found support from forecasts for colder-than-normal weather in the eastern and Midwestern U.S. and declines in natural-gas production levels over the past week, according to Christin Redmond, commodity analyst at Schneider Electric.