After settling for TWO successive days at the same level, the price of WTI crude oil is settling today at $87.27. That's up $1.83 on the day. The high price extended to $89.88. The low price reached $87.20.
On Wednesday, oil prices initially surged to their highest levels with WTI reaching USD 89.88/bbl. This rise was attributed to the ongoing situation in Israel, strong economic data from China, and positive US inventory reports.
Chinese data showed a record daily rate of oil refinery throughput in September, driven by increased manufacturing demand and heightened travel during Golden Week.
However, later in the day, oil prices retraced significantly, reaching lows of USD 87.20/bbl for WTI. President Biden's statement attributing the Gaza hospital attack to an errant rocket from a "terrorist group" added to the market's uncertainty, preventing a more substantial recovery.
The US energy inventory data did show substantial draws in crude oil and petroleum products.
- Crude oil saw a draw -4.49M versus expectations of 0.300M
- gasoline saw a draw -2.371M versus expectations of -1.097M
- Distillates saw a draw of -3.185M versus expectations of -1.360M
