Oil Ticks Up Further on Powell Comments

Crude Oil has ticked up into positive territory, following comments from Fed Chair Jerome Powell on a slightly more positive economic picture.

• WTI NOV 23 up 0.6% at 88.88$/bbl
• WTI-Brent up 0.24$/bbl at -3.94$/bbl
• WTI NOV 23-DEC 23 down -0.06$/bbl at 0.99$/bbl
• WTI DEC 23-JAN 24 up 0.06$/bbl at 1.24$/bbl
• The Federal Reserve will "carefully" consider whether to raise interest rates further and how long to keep them high, given "very favorable" decline in inflation over the summer, indications that the labor market is cooling and the likelihood of more "meaningful tightening" still filtering through from past increases, Fed Chair Jerome Powell said Thursday.
• The comments may add some hopes for a better demand outlook for oil products, which is adding upside.
• WTI had dipped earlier in the day amid a relaxation of oil related sanctions on Venezuela, which could add a further 200k b/d of supply onto the market.
• Ongoing concerns of an escalating conflict in the Middle East continues to add support, after Israel’s Defence Minister was reported to have told troops, “You will soon see Gaza from inside.'
• Nine-year low Cushing inventory levels are also adding to the supply concerns for the oil complex.