Oil rally persists as Saudi-Houthi conflict and US-Iran strike risk underpin prices
Crude oil stays supported as Saudi-Houthi fighting continues and the market weighs possible US strikes on Iran, including claims of renewed Hormuz attacks.
US crude inventories fell 3.06M barrels, more than expected, while gasoline also saw a large draw and distillates posted an unexpected build.
US crude oil inventories declined by 3.060 million barrels in the latest week, versus an expected draw of 0.820 million.
According to the Energy Information Administration's weekly report, US crude inventories dropped more than analysts had anticipated. Gasoline supplies also had a larger-than-expected draw, but an unexpected build in distillates partly offset the figures.
Data from the American Petroleum Institute (API), reported by Julianne Geiger, showed the following for the previous evening:
The official crude draw was smaller than the private estimate, while the gasoline decline in the EIA data was larger. The most significant divergence was in distillates: the EIA reported a build of 1.675 million barrels, whereas the API showed a draw of 2.6 million.
On balance, the crude and gasoline draws are supportive for oil prices, but the distillate build diminishes the positive tone. Compared with the API figures, today's official numbers offer a less clear bullish narrative. Inventory changes are influenced by refinery activity and trade flows, so draws alone do not confirm stronger demand. A single weekly release is unlikely to alter the Federal Reserve's stance, although sustained energy price increases could raise inflation concerns.
The EIA weekly petroleum report tracks US oil inventories, refinery operations, and supply flows. A decline in stocks is a draw, and an increase is a build. Traders compare the official data with expectations and the earlier API survey to assess supply and demand.
Crude oil was trading near $97.93 at the time of the report, little changed on the day. The session low was $96.92, just below a swing-area support around $97, and the high reached $100.40. The 100-hour moving average stood at $97.69, with the price back above that level and below a swing-area resistance target at $98.48.
Share to
Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
Crude oil stays supported as Saudi-Houthi fighting continues and the market weighs possible US strikes on Iran, including claims of renewed Hormuz attacks.
Brent crude rose to a five-month high; tech stocks and crypto tumbled on geopolitical risks and rate fears.
Gold extended its decline after losing the 4,070 support, hit by liquidation despite falling real yields; US Flash PMIs are today's focus.
Gold fell below $4,000 for the first time since July, hitting $3,986.85. Analysts and banks are split on the outlook.