WTI crude oil prices rose 3% on Wednesday, rebounding from multi-month lows, after DOE data showed a larger-than-expected drop in US crude inventories. US crude inventories fell for the sixth week in a row, shrinking by 3.7 million barrels to a total of 429.3 million barrels last week, according to EIA data. Analysts had estimated that inventories would fall by just 700,000 barrels.
As the seasonal data shows, oil supply is below average for this time of year. What's more, a big risk element in this aspect is the specter of an escalating conflict in the Middle East. The region is bracing itself for a possible new wave of attacks by Iran and its allies following last week's assassinations of senior members of Hamas and Hezbollah militants. Supporting the bearish view on demand, Chinese trade data showed that July daily oil imports fell to the lowest level since September 2022. Significantly, China is the world's largest oil importer.
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Source: xStation
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