WTI Crude Oil Strengthens on Inventories’ Draw, Strong Data
Arslan Butt • 1 min read
WTI crude oil prices are climbing higher in early trading on Wednesday, buoyed by encouraging economic data from the US as well as a greater than expected decline in US crude inventories. At the time of writing, WTI crude oil is trading at around $43.08 per barrel.
According to the API report which released during the previous session, crude stockpiles in the US declined by 6.4 million barrels to 501.2 million barrels over the past week. The decline was higher than the forecast for a fall by 1.9 million barrels and supports optimism that oil demand is picking up in the world’s largest energy consumer.
WTI crude oil prices also received a boost after oil production activities in the Gulf of Mexico region restart at a slower pace after the passing of Hurricane Laura, raising concerns about a reduction in supply. The storm did not generate as much damage as feared and markets expected companies operating in the region to resume production quickly in the aftermath.
Crude oil is also trading optimistically after the pace of manufacturing activity increased during August due to an uptick in new orders. August’s ISM manufacturing PMI soared to 56 from 54.2 in July, the highest reading in over one and a half years.