December WTI crude oil futures finished higher on Thursday, putting the market in a position to close higher for the week. The bullish price action was fueled by a number of factors including optimism over record U.S. crude exports, signs that recession fears are fading and a weaker U.S. Dollar. Helping to put a cap on gains were worries over demand from China.
Longer-term traders noted that the start of OPEC+ production cuts and the European Union’s embargo on Russian crude oil were also underpinning prices all week.
US Crude Exports Surge to Record – EIA
U.S. crude oil stockpiles rose in the most recent week, even as the volume of exports hit an all-time record, the Energy Information Administration reported on Wednesday.
Crude inventories rose by 2.6 million barrels in the week to Oct 21 to 439.9 million barrels, nearly triple analysts’ forecasts in a Reuters poll for a 1-million-barrel rise.
The big surprise that drove prices higher, however, was the news that crude exports surged to a weekly record of 5.1 million barrels per day, cutting net crude imports to just over 1 million bpd, also a record.
Crude Supported after GDP Report Showed Some Signs of Inflation Easing
Crude oil was also underpinned on Thursday after the latest U.S. GDP report showed some signs that inflationary pressures could be easing.
The report for U.S. Gross Domestic Product showed 2.6% economic growth in the third quarter. Economists…