Crude Oil Rallies as U.S. Inventory Draw Outruns Supply Relief
November WTI crude oil futures are up sharply for the week through Thursday night. The gain did not come from one headline. The market has spent the week dealing with tanker attacks near the Strait of Hormuz, renewed attacks on Russian refineries, emergency stock releases and fresh talk of legal oil moving on previously sanctioned vessels.
The release and shipping headlines gave both sides of the trade something to work with. WTI got the stronger bid when the EIA reported a large U.S. crude draw. Brent held above $100 but could not add to its risk premium.
At 21:38 GMT Thursday, November WTI crude oil futures are trading at $97.58, up $5.92 or +6.46% for the week. The contract has traded between $89.61 and $98.32. December Brent crude oil futures are trading near $106 a barrel.
The EIA Report Put WTI in Front
The EIA reported that U.S. crude inventories fell by 8.6 million barrels in the week ended October 9. Traders had expected a draw of only 288,000 barrels.
Commercial crude inventories stood at 415.6 million barrels after the draw, still 3% above the five-year average. That is not a supply squeeze. But the market was not prepared for a draw of that size.
Distillate stocks fell by 2.5 million barrels and were 12% below the five-year average. Gasoline inventories rose by 3.5 million barrels. The gasoline build kept the report from being one-sided, but it did not change…
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