WTI Crude Oil Soars to Nine Month High – EIA and Stimulus Hopes Support

WTI crude oil prices soared to the highest level since March after the EIA reported a drop in US crude inventories even as traders eagerly await the coronavirus relief package to be finalized soon. At the time of writing, WTI crude oil is trading at around $48.26 per barrel.

According to the EIA report which released in the previous session, crude stockpiles in the US declined by 3.1 million barrels during the past week. Economists had forecast a smaller drawdown of 1.9 million barrels, and the larger figure cheered traders indicating an improvement in oil demand in the US.

Crude oil prices received an additional boost on Wednesday following the latest FOMC meeting in which the Fed committed to holding interest rates at low levels, as expected. The sentiment turned even more upbeat after lawmakers in the Congress made progress towards reaching an agreement on fiscal stimulus measures worth $900 billion, which includes stimulus checks worth $600-700 as well as unemployment benefits.

WTI crude oil is also trading bullish as the US has started administering COVID-19 vaccines to healthcare workers. The rollout of the vaccine has raised hopes for the pandemic to be brought under control, which could support economic recovery and spur fuel demand.