WTI reaches two-week highs at around $88.00 on soft US Dollar

WTI soared during the US session. The American crude is boosted by the overall US Dollar weakness as the dollar declines more than 1%, while WTI’s exports hit an all-time high due to domestic refiners operating at a higher level. At the time of writing, WTI is trading at $88.05 per barrel after hitting a daily high of $88.38.

The US Dollar Index is falling for the second consecutive day, more than 1%, down from 111.135 highs to 109.774, a tailwind for the oil price. Given OPEC’s decision to cut oil output bolstered WTI price as the market prepares for tighter supply in the coming months.

Furthermore, the shortage of Russian products due to an oil embargo will have implications for inflation, according to Goldman Sachs, in a note quoted by Bloomberg.

US crude stockpiles rose by 2.6 million barrels, exceeding estimates but lower than data reported by the American Petroleum Institute (API), which showed a sharp increase of 4.5 million in US inventories. Exports rose to 5.1 million BPD, the highest ever, while US imports dropped.