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Bouncing Greenback Reverses Recent Oil Gains

  • A multi-decade high CPI print underpinned a solid USD rally into the Wednesday close, countering any support provided by a bullish set of DoE inventories data. WTI crude futures shed as much as 3% at some points of the session, putting WTI on track to test the week's lows of $81.05/bbl.
  • Weekly DoE inventories numbers may have stalled declines, with the data showing a smaller than expected build in reserves. This was compounded by Gasoline and distillates stocks, which showed an unexpected draw of 1.5 and 2.6mln bbls respectively.
  • Gold and precious metals were the main beneficiaries of the CPI release, with spot adding close to $45 to reach session highs of $1868.7. Gains faded ahead of the close, but gold still managed to print the best levels since mid-June on the initial reaction.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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