WTI attempts rebounding after being knocked lower by CPI data

Due to investors’ worries when the US Consumer Price Index, or CPI, surpassed expectations, WTI crude oil prices plunged to a new low for the day. Crude Oil dealers, meanwhile, are focused on salvaging the day.

Despite hitting a new low for the week, geopolitical unrest and supply worries continue to support the price of crude oil. US crude stocks unexpectedly increased by 10.2 million barrels, adding to the reading from the previous week to bring US crude supply to 424.2 million barrels, which helped lower oil prices in the early Thursday trading session.

Lower-than-anticipated refinery utilization rates and larger net imports of foreign oil both contributed to the unexpected crude accumulation. Despite concerns about inflation following the CPI, crude oil is still in high demand since the US issued further sanctions against Russia for violating a $60 per barrel trade cap on domestic oil sales.

Investors are worried that as Israel and Palestinian Hamas extend their fight over Gaza, geopolitical tensions may spread to Iran and Saudi Arabia. Oil market sentiment is still positive following the intensification of the Gaza Strip conflict.