Crude Oil Prices Jump $3 above $72, Despite EIA Inventory Draw

Oil prices were retreating in the last few sessions, with WTI crude falling below $70, but it has jumped nearly $3 up in the last few hours.

Written by: Skerdian Meta • Wednesday, November 6, 2024 • 1 min read

• Last updated: Wednesday, November 6, 2024

Oil prices were retreating in the last few sessions, with WTI crude falling below $70, but we have seen a strong jump of nearly $3 in the last few hours. The EIA Oil inventory showed a decent buildup for last week, which should have weighed on prices further, but Oil is ignoring it totally.

EIA crude Oil inventories showed a buildup for last week

Crude oil prices, which hit yearly lows at the end of last month, saw a recovery in early November as speculation grew that OPEC might delay planned production hikes, alleviating supply concerns. Today, oil prices climbed by roughly $3 after OPEC officially postponed the anticipated production increase, following a 50-cent jump over the weekend. However, the upcoming U.S. elections have added some pressure, with WTI crude briefly dropping below $70.

WTI Oil Chart H4 – Bouncing Off MAs

A sharp rebound in the last few hours pushed prices above $72 following the election of Donald Trump, whose stance on enforcing stricter sanctions on Iranian oil could generate short-term bullish momentum. The longer-term effects of his policies, however, are less certain. Persistent geopolitical issues in the Middle East, including the risk of conflict, continue to add volatility to the oil market. Below is the EIA inventory for last week:

EIA Weekly US Crude Oil Inventory (ending Nov 1)

- Crude oil: +2,149K barrels (expected +1,103K barrels)
- Previous week: +5,474K barrels
Other EIA Inventory Data:
- Gasoline: +412K barrels (expected -878K barrels)
- Distillates: +2,947K barrels (expected -1,137K barrels)
- Refinery utilization: +1.4% (expected +0.3%)

API Private Inventory Data (released yesterday):

- Crude oil: +1,643K barrels
- Gasoline: -2,019K barrels
- Distillates: -1,478K barrels

US WTI Crude Oil Live Chart

WTI

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.