WTI crude oil prices briefly dipped below $81 earlier today but later rebounded, closing in on the day’s highs at $83.46. Several factors contributed to this rebound, including growing risk appetite, a weakening US dollar after the softer US Sevices and Manufacturing PMI, and the possibility of additional sanctions against Iran.

Oil prices successfully held above the $80 benchmark, indicating resilience in the face of downward pressure and buying pressure as the price of WTI got close to $80. After the US market closed, private oil inventory data was released, with expectations of a build of 1.8 million barrels of oil, along with draws of 1.4 million barrels of gasoline and 900,000 barrels of distillates. There is also speculation of a potential 4 million barrels per day draw in crude oil, which could explain some of the market enthusiasm seen late in the day.

WTI Crude Oil Chart Daily – The 200 SMA Held As Support

API Crude Oil Private Inventories

• Headline crude inventories decreased by 3.23 million barrels, contrary to expectations of an increase of 1.8 million barrels.
• Distillates inventories increased by 0.724 million barrels, while expectations were for a decrease of 0.9 million barrels.
• Gasoline inventories decreased by 0.595 million barrels, compared to expectations of a decrease of 1.4 million barrels.
• Cushing inventories decreased by 0.898 million barrels.
• Strategic Petroleum Reserve (SPR) inventories decreased by 0.80 million barrels.

API Inventories Expectations Centred on:

• Headline crude +1.8 mn barrels
• Distillates -0.9 mn bbls
• Gasoline -1.4 mn

WTI Crude Oil Live Chart