Oil prices turned around today, climbing around 3% as we saw the second straight weekly larger-than-expected draw from US crude stocks. Crude inventories fell by 9.6MM/bbls last week, far exceeding the 1.8MM/bbl draw analysts forecasted.
“Overall, very solid numbers that kind of fly in the face of people who have been saying that the market is oversupplied. This report could be a bottom (for oil prices),” said Phil Flynn, an analyst at Price Futures Group. The 12 month backwardation for Brent and WTI is at the lowest level since December 2022. The main hurdle coming for oil prices to get over is the US Federal Reserve. WTI traded up $1.86 or 2.8% to close at $69.56. Brent traded up $1.77 or 2.5% to close at $74.03