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WTI futures are trading higher for the second consecutive day on Thursday, to depart the last two weeks’ downtrend. WTI crude has extended its recovery from Tuesday’s lows at $82.15 to session highs at $87.10 before retreating around $86.00 zone. The American crude is trading at $84.47 per barrel at the time of writing versus the previous closing price of $84.58
Sanctions on Russia and lower supplies are two factors that boost oil prices. The European ban on Russian crude oil that will come into effect in December, amid new sanctions on the backdrop of the Ukrainian war, is pushing prices higher as the eurozone leaders struggle to find alternative providers ahead of the cold winter.
US official data has revealed that the country’s Strategic Petroleum Reserves fell last week to the lowest level since 1984. These figures have counterbalanced the announcement of US President Joe Biden’s plan to sell 15 million barrels from the strategic reserves to tame crude prices.
Beyond that, the EIA reported a 1.725M decline in crude oil inventories in the week of October 14, against market expectations of a 1.38M increase, which has contributed to push prices higher.
News that China, the world’s larger importer, is considering shortening the COVID-19 quarantine for visitors has eased market concerns about a decline in demand thus adding bullish pressure on prices.
