Crude Rallies Further on EIA draw

WTI has rallied during US trading as a large crude draw and almost decade low stocks add to further support from a tight market and concerns over escalation in the Middle East. However, it remains below the intraday high of $89.91/b

• WTI NOV 23 up 2.4% at 88.72$/bbl
• WTI-Brent up 0.31$/bbl at -4.16$/bbl
• WTI NOV 23-DEC 23 down -0.11$/bbl at 1.11$/bbl
• WTI DEC 23-JAN 24 up 0.1$/bbl at 1.24$/bbl
• WTI DEC 23-DEC 24 up 1$/bbl at 8.71$/bbl
• The latest EIA weekly petroleum data showed another decline in crude stocks at Cushing to the lowest since October 2014 at 21.01mbbls.
• EIA Weekly US Petroleum Summary - w/w change week ending Oct 13: Crude stocks -4,491 vs Exp -413, Crude production 0, SPR stocks 0, Cushing stocks -758.
• Concerns on near term supply have widened the backwardation in time spreads apart from on the very prompt.
• In addition to the EIA data, calls by Iran to embargo oil to Israel, as well as wider concerns that the conflict in the Middle East spreading beyond Israel and Gaza, have bolstered prices today.
• The Iranian Foreign Minister Hossein Amirabdollahian calls for a “full and immediate boycott” of Israel by Muslim countries, the expulsion of Israeli ambassadors and an oil embargo against Israel, according to statement by ministry on Telegram.
• However, OPEC is unlikely to take any special measures, based on sources reported in the media.