WTI jumps to its highest level since 2014 near $79.50 amid supply constraints
- WTI posts gains for the fifth straight session on Wednesday in the European trading hours.
- Oil prices remain elevated despite a stronger US dollar.
- Higher energy demand, supply constraint, and fall in US stockpiles favor WTI.
Crude oil extends the previous session’s upside momentum on Wednesday. The prices recover from the intraday low to trade near the session’s high. At the time of writing, WTI is trading at $79.28, up 0.44% for the day.
The rebound in the US Dollar Index (DXY), which indicates the performance of the greenback against six major rivals fails to contain the gains in crude oil prices. The greenback is trading at 94.11 with 0.14% gains.
Crude oil prices trade near the levels last seen in November 2014, after Saudi Aramco cut almost all of its November official selling prices in Asia, the Mediterranean, Europe, and the US-bond cargoes. The move came after OPEC+ reaffirmed its planned 400,000 bpd increase in crude output target for November.
Additionally, the latest API data showed the US crude oil inventories rose 0.951 million barrels in the week ended October 1st, after 6.108 million barrels declines in the previous week and as with market expectations of 4.127 million gains.
Meanwhile, as per Bloomberg, the Royal Dutch shell resumed production at one of its main US Gulf of Mexico offshore refineries.
As for now, the US dollar dynamics continue to influence WTI prices.
WTI additional levels