WTI slightly recovers as supply constraints remain a concern

WTI is aiming to recoup $88.50 as energy prices show some improvement. Last week, crude oil fell sharply as a result of widespread risk-off flows that caused investors to flock to the US Dollar. Crude oil prices fell to a three-week low as the US Dollar Index reached a ten-month high.

After falling for a week to three-week lows as a result of widespread market risk aversion, WTI Crude Oil barrel prices mounted a modest comeback to regain the $88.50 level. As global oil output is predicted to fall short of global demand, US crude oil prices reached ten-month highs.

When Turkey said that talks about restarting construction are still ongoing, it poured cold water on earlier rumours about the resumed building of an Iraqi oil pipeline. After over six months of the project’s development being halted, a crucial oil pipeline from Iraq to Turkey is still in the dark.

The US’ API Weekly Crude Oil Stocks update for the week ending September 29th is scheduled to be released late in Tuesday’s trading session and will be eagerly awaited by energy traders. As global production outpaces crude consumption by roughly 2 million barrels per day, US oil stocks last showed a decline of 1.586 million barrels.