WTI crude oil settled 98-cents higher today to $70.43.
Oil was trading as high as $88 early last year but has been hovering near $70 for months. The opening level for the year was $71.65 so a slight decline is expected this year.
Today's US EIA oil inventory data:
- Raw -4237K vs -1867K expected
- Gasoline +1630K vs -1080K expected
- Distillates -1694 vs -313K expected
- Furnace utilization +0.7% vs -0.4% expected
Global inventories are tighter than some of the reporting suggests but OPEC+ is holding back plenty of spare capacity. A key question early next year surrounds US policy towards Iran and whether Trump will try to eliminate Iranian barrels from the world market. China is currently the main customer and that may be a tall order.
Technically, it's a waiting game to see if $65 holds but if it can through the next few months then seasonal spring winds should help.
WTI weekly crude oil
