Thursday, January 9, 2025

WTI Prices Up as DOE Reports Crude Draw

WTI closed higher for the first time in five sessions yesterday

The front month West Texas Intermediate contract is up $1.25 from yesterday’s close of $47.98 per barrel. The 2.3% increase in WTI front month contracts marked the first time in five sessions that the price of the U.S. crude benchmark finished the day strong than when it started.

The Department of Energy (DOE) reported crude inventories of 459,682 MBOE, a decline of 4,203 MBOE from last week. Crude oil inventories were climbing after eight weeks of declines, putting more pressure on WTI prices. Cushing inventories decreased by 212 MBOE from last week, while distillate inventories increased by 2,588 MBOE in the same time period.

U.S. stocks also saw the end to a five-day losing streak Tuesday, with the S&P 500 gaining 1.2%, while the blue-chip Dow and Nasdaq Composite closed up 1.1% and 1%, respectively. WTI closed today up again at $48.82, continuing yesterday’s gains.

International benchmark fairing worse

While WTI saw its first gains in several days, Brent crude oil continued to feel downward pressure from international events. Concerns over further declines in the Chinese stock market and more crude oil coming out of Iran continue to weigh heavy on the international crude oil benchmark.

China’s stock market saw a rebound today, with the country taking the lead in a broader recovery in Asian markets, reports CNBC. The Shanghai Composite index gained 3.5% Wednesday, breaking a three-day losing streak. China’s blue-chip stocks showed mix results even as the broader index gained, however. PetroChina (ticker: PTR) closed down 1.7%, while Bank of China shed 0.6% and China Vanke lost 0.1%. China’s Poly Real Estate gained 3%.

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