WTI edges higher on supply concerns

At the time of writing, West Texas Intermediate crude oil is up by over 0.9% trading at $88.92 having recovered from the $87.35 low reaching the $89.78 high so far.

Supply concerns have been dominating the market on the back of the United States reporting better-than-expected economic growth data for Q3.

The United States reported its gross domestic product rose by 2.6% on an annualized in the third quarter, beating the 2.3% consensus forecast but above the second quarter’s 0.6% drop. The data comes ahead of PCE on Friday and the Federal Reserve meeting next week. In any case, the data today is expected to keep the Fed on track in its attempt to slow inflation by hiking rates steeply.

Weak distillate supplies are offering support to prices. The Energy Information Administration mid-week reported distillate stocks rose by 0.2 million barrels last week, rising off a 17-year low and offering support to oil.

The EIA also noted US oil exports rose to a record last week. The agency reported that US gasoline inventories fell by about 1.5 million barrels last week and distillate stocks remained at record lows, while US exports of crude oil were strong.