Oil jumped to a new one-year high as crude stockpiles in the largest U.S. storage center fell to their lowest level since July 2022.
West Texas Intermediate settled above $93 a barrel after inventories in Cushing, Oklahoma fell below 22 million barrels, near operational lows. The short-term premium for US benchmark West Texas Intermediate is trading above $2 a barrel, the highest since July 2022, as the futures market reflects physical stiffness.
While oil’s recovery has brought back talk of $100 crude, gains had slowed over the past week. India, a key consumer, has seen the negative effects of rising prices on its economy, raising some questions about demand next year.
Even so, stocks have been falling in most regions. At the Cushing facility, the tanks are operating at 25% capacity.
“My fear in this market is that we have uncovered so much inventory,” Amrita Sen, co-founder and head of research at consultancy Energy Aspects, told Bloomberg TV. “What’s happening in the US right now: Cushing is dry”.
Prices:
- WTI for November delivery rose $3.29 to settle at $93.68 a barrel in New York.
- Brent for November settlement rose $2.59 to settle at $96.55 a barrel.
– With the assistance of Lisa Abramowicz.
