Crude Rises On Large US Inventory Drawdown

Oil prices rose around a percent following EIA data showing a large US crude inventory drawdown. Commodities were also supported by a pickup in risk sentiment following softer US data improving hopes of a Fed rate cut by year end. The USD index fell 0.3%.

• WTI rose 1% to $83.60/bbl after an intraday high of $83.93. It has started today higher around $83.64. The bull cycle continues with initial resistance at $84.38, July 2 high, followed by the bull trigger at $85.27. Initial support is at $79.19, 50-day EMA.
• Brent is also 1% higher at $87.08/bbl after reaching $87.39. Price gains are maintaining the current bullish sequence of higher highs and higher lows. Initial resistance is at $88.04, Apr 19 high, and the bull trigger is at $89.32, April 12 high. Initial support is at $83.15, 50-day EMA.
• The EIA reported a crude inventory drawdown of 12.16mn barrels last week, the largest in almost a year and significantly more than expected. Gasoline stocks fell 2.21mn and distillate 1.54mn. Refinery utilization rose 1.3pp to 93.5%.
• Chevron has said that its operations in the Gulf of Mexico are continuing as usual ahead of hurricane Beryl, while Exxon and BP have said that they have evacuated non-essential personnel from some platforms. The storm’s path is currently expected to possibly impact around 73kbd of federal offshore oil production, according to the National Hurricane Center and Ocean Energy Management data.