Crude Oil Rallies on Reported Cushing Drawdown
The WTI posted a 2-percent gain Thursday amid a report that inventories are down at the Cushing, Okla., crude storage hub.
“The news event was storage at Cushing,” Bob Yawger, director of the Futures Division with Mizuho Americas, told Rigzone, referring to Genscape’s report of a 1.1 million-barrel decrease from July 27 to 31. “That’s the big issue today.”
September WTI futures gained $1.30 Thursday, settling at $68.96 per barrel after trading within a range of $66.92 to $69.36. The October Brent benchmark price increased $1.06 to settle at $73.45.
“The bigger issue, in my opinion, was that we took out support versus $67.03 from July 17 and 18,” continued Yawger. “We did trade below but still close to $67 even a big whole number. There was no sign that the specs were bailing against either of those numbers, either the double bottom or the big whole number, and I think that certain people took that as a sign that this bear market … may be over and maybe it’s time to cover some of those shorts we have on the books and you have this super-sized short covering rally through the course of the day. I reckon it’s nothing more than that.”
In addition, Yawger noted that “a lot of talk” about Iran ramping up military exercises in the Persian Gulf – particularly the Strait of Hormuz – contributed to the increasing crude benchmarks Thursday.
Henry Hub natural gas futures for September gained six cents to settle at $2.82 while reformulated gasoline increased two cents to end the session at $2.07 a gallon.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension