Quotes for energy resources WTI US Crude Oil Spot (WTI)

• WTI plunges to near $71.35 in Wednesday’s Asian session. 
• The stronger Greenback exerts some selling pressure on the USD-denominated Oil price. 
• Investors await the outcome of the US presidential election as polls were closing in the US. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $71.35 on Wednesday. The WTI price edges lower as the US presidential election polls were closing in the United States.

According to CNN, Former US President Donald Trump will win the key race of Florida, while Kamala Harris picks up Massachusetts and Maryland. Harris and Trump each need at least 270 electoral votes to win the presidency.

Meanwhile, the US Dollar (USD) rises to 104.25 versus a basket of other currencies as Trump trades continue to rally as Trump odds improve. A stronger Greenback makes oil more expensive in other countries.

On Sunday, a larger group called OPEC+, consisting of OPEC members plus other oil-producing countries, agreed to extend their oil production cut to 2.2 million barrels per day (bpd) until the end of December 2024. The countries also reiterated their commitment to “achieve full conformity” with their production targets and to compensate for any overproduction by September 2025.

The American Petroleum Institute (API) weekly report showed crude stocks rose last week. Crude oil stockpiles in the United States for the week ending November 1, increased by 3.132 million barrels, compared to a decline of 0.573 million barrels in the previous week. The market consensus estimated that stocks would increase by 1.8 million barrels.

• Oil prices receive downward pressure as traders adopt caution ahead of US election results on Tuesday.
• WTI prices rose more than 3% after OPEC+ postponed its planned production increase for December on Monday.
• Oil demand may increase as China is expected to approve an additional stimulus package of more than 10 trillion yuan.

West Texas Intermediate (WTI) Oil price edges lower due to uncertainties surrounding the results of the US presidential election on Tuesday. The WTI price trades around $71.20 during the Asian hours after rising more than 3% on Monday, which could be attributed to OPEC+ coalition, delaying plans to hike production in December.

On Sunday, the OPEC+ alliance—which includes the Organization of the Petroleum Exporting Countries and its allies like Russia—agreed to extend its production cut of 2.2 million barrels per day (bpd) through December 2024, citing weak demand and rising supply outside the group.

Regarding the US presidential election, former President Donald Trump and Vice President Kamala Harris both predicted victory as they campaigned across Pennsylvania on Monday in the final, frantic day of an exceptionally close US presidential election.

The opinion polls show that Trump and Harris are virtually even. The final winner may not be known for days after Tuesday’s vote. Trump has already indicated he may challenge any unfavorable result, as he did in 2020.

The Standing Committee of the National People's Congress (NPC) is meeting in China from November 4 to 8 and is expected to approve additional stimulus measures to support the slowing economy. Media reports suggest that the potential stimulus package could exceed 10 trillion yuan. Any new measures could positively impact Oil prices, as China is the world’s largest Oil importer.

Oil prices may have struggled due to the fading likelihood of a significant rate cut by the Federal Reserve (Fed) in November. Lower borrowing costs could stimulate economic activity in the United States (US), the world’s largest Oil consumer, potentially boosting oil demand and prices. However, markets expect a modest 25 basis point rate cut this week. The CME FedWatch Tool shows a 99.5% probability of a quarter-point rate cut by the Fed in November.

• WTI price rises as the OPEC+ group has delayed the planned output increase.
• OPEC+ has extended its production cut of 2.2 million barrels per day through the end of December 2024.
• Traders observe the upcoming US presidential election and the Fed’s policy decision this week.

West Texas Intermediate (WTI) Oil price appreciated more than 1% on Monday, trading around $70.20 per barrel during Asian hours. The recent increase in crude Oil prices can be attributed to the delay in a planned output increase by the OPEC+ coalition, which includes the Organization of the Petroleum Exporting Countries and its allies, such as Russia.

On Sunday, the OPEC+ alliance agreed to extend its production cut of 2.2 million barrels per day (bpd) through the end of December 2024. citing weak demand and rising supply outside the group. Additionally, the member countries reaffirmed their commitment to "achieve full conformity" with production targets and to compensate for any overproduction by September 2025.

Traders are closely watching the upcoming US presidential election on Tuesday, as polls indicate a tight race between Democratic candidate Kamala Harris and Republican nominee Donald Trump across seven battleground states, according to the final New York Times/Siena College poll cited by Reuters.

The survey shows Vice President Harris with slight leads in Nevada, North Carolina, and Wisconsin, while former President Trump has a narrow advantage in Arizona. The candidates are in a dead heat in Michigan, Georgia, and Pennsylvania. Conducted from October 24 to November 2, the poll suggests that all matchups fall within a 3.5% margin of error.

In addition to the election, traders are also focused on the upcoming US Federal Reserve (Fed) policy decision, with expectations of a modest 25 basis point rate cut this week. The CME FedWatch Tool currently shows a 99.6% probability of a quarter-point rate reduction by the Fed in November.

In China, the Standing Committee of the National People's Congress is meeting from November 4 to 8, during which it is expected to approve additional stimulus measures aimed at bolstering the slowing economy. Any additional measures taken could have a positive impact on Oil prices, given that China is the world's largest Oil importer.

• News that Iran is preparing an attack on Israel has given a fresh boost to Oil prices.
• OPEC+ members are considering delaying the output hike for at least one month.
• A somewhat stronger US Dollar ahead of the NFP is weighing on Crude.

Oil prices are appreciating for the third consecutive day on renewed concerns about escalating tensions in the Middle East. The US benchmark WTI has reached weekly highs at $71.40 after returning to the $70.50 area.

News reporting that Iran is considering an attack on Israel from Iraqi territory have reactivated fears of a regional war in the area that might curb global crude supply, boosting Oil higher.

Apart from that, Reuters informed on Thursday that the OPEC+ countries might delay the output increase originally planned for December by at least a month.

The plan to increase crude output by 180,000 barrels per day had already been delayed from its original date, in October, due to the low prices.

On Friday, the US Dollar is showing a somewhat firmer pace, with investors cautious ahead of the release of October’s employment report. This is also weighing on Oil’s rally.

• WTI price gained ground due to rising geopolitical tensions amid reports that Iran may attack Israel.
• Israeli intelligence believes Iran intends to launch numerous drones and ballistic missiles before the US presidential election.
• US Oil production increased by 1.5% in August, reaching a monthly record high of 13.4 million barrels per day.

West Texas Intermediate (WTI) Oil price holds steady on Friday during Asian trading hours, around $70.20 per barrel, following gains in the previous session. Crude Oil prices were bolstered by rising geopolitical tensions amid reports that Iran may be planning a retaliatory strike on Israel from Iraqi territory in the near future.

According to a Reuters report citing Axios, two unnamed Israeli sources revealed that Israeli intelligence believes Iran intends to launch an attack from Iraq, potentially involving numerous drones and ballistic missiles, possibly before the US presidential election on November 5.

Furthermore, the OPEC+ coalition, which comprises the Organization of the Petroleum Exporting Countries and its allies, including Russia, may delay its planned output increase for December by at least a month amid concerns over weak oil demand and rising supply.

Originally, the group had aimed to boost production by 180,000 barrels per day (bpd) in December, but this increase was previously postponed from October due to falling prices, according to four sources familiar with the situation, as reported by Reuters on Wednesday.

US Oil production increased by 1.5% in August, reaching a monthly record high of 13.4 million barrels per day (bpd), according to the US Energy Information Administration's (EIA) latest Oil and natural gas production report. This figure surpasses the previous record of 13.31 million bpd set in December 2023. In major Oil-producing states, Texas saw a 1.7% rise in output to a record 5.82 million bpd, while New Mexico's production climbed 2.8%, reaching a record 2.09 million bpd.

• WTI prices could rise amid optimism regarding US Oil demand following an unexpected decrease in crude inventories.
• EIA Crude Oil Stocks Change fell by 0.515 million barrels in the previous week, against the expected 2.3 million-barrel increase.
• Crude Oil prices may appreciate due to increased expectations of OPEC+ delaying a planned production increase.

West Texas Intermediate (WTI) Oil price dips slightly to around $68.70 during Thursday's Asian trading hours. However, crude prices found support amid optimism surrounding US fuel demand after an unexpected decline in crude inventories.

The US Energy Information Administration (EIA) reported that crude Oil stockpiles fell by 0.515 million barrels in the week ending October 25, contrary to market expectations of a 2.3 million-barrel increase.

Additionally, crude Oil prices may gain further support amid expectations that OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies like Russia, might delay a planned production increase.

Reuters reported that OPEC+ could postpone its December output hike by at least a month due to concerns about weak Oil demand and rising supply. The group had scheduled an increase of 180,000 barrels per day (bpd) for December but previously postponed this from October due to declining prices.

Meanwhile, markets are closely monitoring ongoing geopolitical tensions in the Middle East, particularly following a warning from Israel's military chief of a 'very hard' strike on Iran if further missile attacks occur.

Lebanese Prime Minister Najib Mikati told Lebanese broadcaster Al-Jadeed on Wednesday that US envoy Amos Hochstein suggested a potential ceasefire in the Israel-Hezbollah conflict could be reached before the US elections on November 5. Hochstein traveled to Israel to discuss ceasefire terms with Hezbollah, as confirmed by US State Department spokesperson Matthew Miller.

• WTI price receives some support from a drop in US crude oil inventories.
• API Weekly Crude Oil Stock fell by 0.573 million barrels in the previous week, against an expected 2.3 million-barrel increase.
• An Axios reporter stated that Israeli Prime Minister Benjamin Netanyahu would discuss a diplomatic resolution to the war in Lebanon.

West Texas Intermediate (WTI) Oil price steadies around $67.40 during Wednesday’s Asian session, following two days of declines. Crude Oil prices found support from a surprise drop in US crude oil inventories.

Data from the American Petroleum Institute (API) on Tuesday showed that US weekly crude Oil stockpiles fell by 0.573 million barrels in the week ending October 25, contrary to expectations of a 2.3 million-barrel increase. The previous week's stock level was 1.643 million barrels. Investors now await the EIA crude oil stockpiles report, due Wednesday.

On Tuesday, Oil prices faced downward pressure after an Axios reporter stated on X that Israeli Prime Minister Benjamin Netanyahu would soon meet with several ministers and military and intelligence leaders to discuss a diplomatic resolution to the war in Lebanon, per Reuters.

However, the US plan to purchase Oil for its Strategic Petroleum Reserve (SPR) provided some support for WTI prices. On Monday, the US announced intentions to acquire up to 3 million barrels for delivery by May next year. This purchase could deplete the remaining funds available for SPR replenishment until further funding is approved by Congress.

Crude Oil prices may encounter challenges as the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries and partners like Russia, plans to begin easing its production cuts in December, aiming for an increase of 180,000 barrels per day (bpd).

• WTI price edges lower to near $67.55 in Thursday’s Asian session. 
• Easing fear of crude supply and China’s demand woes could weigh on the WTI price. 
• Investors will monitor the US advanced Q3 GDP on Wednesday ahead of the employment data. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $67.55 on Tuesday. The WTI price plunges as the limited military operation eased concerns about a potential all-out war in the Middle East.

On Saturday, Israel targeted Iran's military installations in three provinces in reaction to Tehran launching ballistic missiles at Israel on October 1. However, Israel did not strike Iran's oil or nuclear facilities in retaliation for Iran's ballistic missile attack, and Iran's official media claimed that oil output was normal. This, in turn, undermines the WTI price as a fear of significant disruption in the crude supply fades.

Furthermore, weak demand outlooks and China's economic slowdown contribute to the WTI’s downside. Data released by China's National Bureau of Statistics on the weekend showed the country's industrial profits fell by 27.1% YoY in September, the steepest decline since the pandemic.

A report from the International Energy Agency (IEA) indicated that oil demand is estimated to grow at only half the pace in 2024 and 2025 compared to 2022 and 2023, primarily due to a decline in Chinese demand.

The flash Gross Domestic Product (GDP) data from the United States (US) for the third quarter will be published on Wednesday, which is estimated to expand 3% in Q3. The US Nonfarm Payrolls will be released on Friday. If the data show a stronger-than-expected outcome, this could lift the US Dollar and weigh on the USD-denominated WTI price. 
 

• The Oil price plunges more than 5% as Israel didn’t attack Oil facilities in Iran over the weekend.
• Investors await the Q3 GDP data from the Eurozone and the US to get cues about the current status of global economic health.
• US Trump vowed to hike import tariffs by 60% on China.

West Texas Intermediate (WTI), futures on NYMEX, dives vertically to near $67.00 in Monday’s European session. The Oil price weakens significantly as Israel did not attack Iran’s Oil and energy facilities in its retaliation move, which has diminished tight supply risks.

Israel launched a few airstrikes on Iran’s defense-producing facilities over the weekend in an attempt to weaken its capacity for retaliation. After the attack, Israel Prime Minister Benjamin Netanyahu said, “We promised we would respond to the Iranian attack, and on Saturday we struck. The attack in Iran was precise and powerful, achieving all of its objectives”, Home Newsday reported.

Broadly, the Oil price has been under pressure by its vulnerable demand outlook amid growing global economic risks. For the economic health checkup, investors will focus on the flash Q3 Gross Domestic Product (GDP) data from the Eurozone and the United States (US), which will be published on Wednesday.

On an annualized basis, the Eurozone and the US economy are estimated to have grown by 0.8% and 3%, respectively. The scenario of a lower-than-expected growth rate will have a negative impact on the Oil price.

Meanwhile, the Oil price is also facing pressure from former US President Donald Trump’s promise of hiking tariffs by 60% on imports from China if he wins the presidential elections against current Vice President Kamala Harris.

• WTI loses ground due to easing geopolitical tensions in the Middle East.
• Israel's attack on missile and air defense sites in Iran proved to be less aggressive than many had anticipated.
• OPEC+ plans to roll back its production cuts in December, with aiming to boost output by 180,000 barrels per day.

West Texas Intermediate (WTI) Oil prices fell by more than 4%, trading around $68.40 during the Asian session on Monday. This decline can be linked to easing geopolitical tensions following Israel's targeted airstrikes on Iran early Saturday, which were primarily aimed at missile and air defense sites and turned out to be less aggressive than many had expected.

Israeli jets carried out three waves of strikes before dawn on Saturday, targeting missile factories and other locations near Tehran and in western Iran. Despite this, Iran has downplayed the damage, with Supreme Leader Ayatollah Ali Khamenei stating that the attack "should neither be downplayed nor exaggerated." The oil market appears to interpret the Israeli strike and Iran's response as a sign of de-escalation from the previously heightened tensions, per Reuters.

The OPEC+ group, comprising the Organization of the Petroleum Exporting Countries and allies such as Russia, is still on track to begin rolling back some of its production cuts in December, aiming to increase output by 180,000 barrels per day (bpd). This will mark the first step in a series of output increases planned for 2025.

Demand in Asia, which accounts for about two-thirds of global seaborne crude imports, has been weak throughout 2024. The October arrivals are expected to follow this trend. A significant portion of this decline can be attributed to China, the world's largest crude importer, which has experienced a drop of 350,000 bpd in crude arrivals during the first nine months of this year compared to the same period in 2023.

• WTI price gains traction as traders adopt caution amid escalating tensions in the Middle East and anticipated ceasefire discussions.
• Oil traders are keeping a close eye on Israel's response to Iran's missile attack on October 1.
• US Secretary of State Antony Blinken emphasized that the United States does not endorse a prolonged Israeli military campaign in Lebanon.

West Texas Intermediate (WTI) Oil price edges higher after two days of losses, trading around $70.40 per barrel during the Asian session on Friday. Crude Oil is set for a slight weekly gain as prevailing tensions in the Middle East and upcoming ceasefire discussions for Gaza keep traders cautious.

Oil market participants are closely watching for Israel's response to Iran's missile attack on October 1, which raised concerns about potential strikes on Tehran's Oil infrastructure that could disrupt supply chains. However, reports indicate that Israel may target Iranian military sites rather than nuclear or oil facilities, according to Reuters.

In parallel, US and Israeli officials are preparing to resume talks on a potential ceasefire and the release of hostages in Gaza in the coming days. US Secretary of State Antony Blinken stated Thursday that the United States does not support a prolonged Israeli campaign in Lebanon, while France has advocated for an immediate ceasefire and diplomatic efforts.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, retreated from its late-July high, hovering around 104.00. This pullback supported demand for dollar-priced Oil.

However, Oil prices faced downward pressure following a larger-than-anticipated rise in US stockpiles last week, driven by increased imports and an unexpected rise in gasoline inventories as refineries boosted output after seasonal maintenance.

Data from the US Energy Information Administration (EIA) on Wednesday showed a crude oil stock build of 5.474 million barrels, bringing total inventories to 426 million barrels for the week ending October 18, far surpassing the forecasted 0.7 million-barrel increase.

• WTI gains ground due to heightening fears of supply disruptions amid rising uncertainties in the Middle East.
• Israel launched strikes on southern Beirut while US Secretary of State Antony Blinken was touring the region, urging for a ceasefire.
• Oil prices faced challenges as EIA Crude Oil Stocks Change showed an increase of 5.474 million barrels.

West Texas Intermediate (WTI) Oil price recovers its recent losses from the previous session, trading around $71.60 per barrel during Asian trading hours on Thursday. Concerns over the Middle East conflict continue to weigh on investors, heightening fears of potential supply disruptions from the region, which is helping to support crude Oil prices.

On Wednesday, Israeli strikes hit southern Beirut, while US Secretary of State Antony Blinken toured the region, advocating for a ceasefire in both Gaza and Lebanon. Iran-backed Hezbollah intensified its attacks on Israel, deploying "precision missiles" for the first time and launching new types of drones targeting Israeli sites. Hezbollah also claimed to have struck an Israeli military factory near Tel Aviv, per Reuters.

Oil prices came under pressure due to a larger-than-expected build in US stockpiles, as imports increased and gasoline inventories unexpectedly rose. This came after refineries ramped up production following seasonal maintenance. The US Energy Information Administration (EIA) reported a crude oil stock increase of 5.474 million barrels, bringing total inventories to 426 million barrels for the week ending October 18—well above the forecasted rise of 0.7 million barrels.

Meanwhile, the US Dollar Index (DXY), which tracks the US Dollar’s (USD) value against six major currencies, surged to its highest level since late July, reaching 104.57 on Wednesday. This further weakened the demand for dollar-denominated Oil.

Signs of economic resilience and rising inflation concerns have lessened the chances of a significant rate cut by the Federal Reserve in November. Higher borrowing costs could strain the US economy, the world's largest Oil consumer, potentially dampening economic activity and reducing Oil demand.

• WTI holds steady amid hopes for a demand recovery in China and Middle East tensions.
• A larger-than-expected rise in US crude stock caps the commodity amid a bullish USD.
• Traders now look forward to the official US inventory data for short-term opportunities.

West Texas Intermediate (WTI) US Crude Oil prices trade with a positive bias for the third successive day on Wednesday and placed around mid-$71.00s during the Asian session. The commodity remains close to over a one-week high touched on Tuesday amid hopes for improving demand from China and geopolitical risks stemming from the ongoing conflicts in the Middle East. 

Investors remain hopeful that China's massive stimulus measures announced recently will ignite a lasting recovery in the world's second-largest economy and boost fuel consumption in the world's largest crude-importing nation. Moreover, concerns that a further escalation in the Middle East conflict could impact supply in the key oil-producing region and tighten market balances in the months ahead. This turns out to be key factors lending support to Crude Oil prices. 

Meanwhile, industry data published by the American Petroleum Institute (API) on Tuesday US crude stocks rose more-than-expected, by 1.64 million barrels last week. Apart from this, the ongoing US Dollar (USD) rally to its highest level since early August, bolstered by bets for smaller interest rate cuts by the Federal Reserve (Fed), is holding back bullish traders from placing fresh bets and keeping a lid on any further appreciating move for Crude Oil prices. 

Market participants now look forward to the Official US government oil inventory data for a fresh impetus later this Wednesday. Apart from this, fresh geopolitical developments and the USD price dynamics should contribute to producing short-term trading opportunities around Crude Oil prices.

• WTI lacks any firm intraday direction on Tuesday amid mixed fundamental cues.
• Concerns about slowing demand continue to act as a headwind for Oil prices.
• Middle East tensions warrant some caution before positioning for further losses.

West Texas Intermediate (WTI) US Crude Oil prices struggle to capitalize on the previous day's modest gains and oscillate in a narrow band, around the $69.70-$69.75 area during the Asian session on Tuesday. The commodity, meanwhile, remains within the striking distance of a nearly three-week low touched last Friday and seems vulnerable to prolonging the recent fall witnessed over the past two weeks or so.

The initial market reaction to an interest rate cut by the People's Bank of China (PBOC) on Monday turned out to be short-lived amid concerns over slowing demand, which continues to act as a headwind for Crude Oil prices. The Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) trimmed their global demand forecast last month amid an economic downturn in China – the world's biggest oil importer. The fears were further fueled by the overnight warning by IEA head Fatih Birol, saying that weakness in China will continue to weigh on global oil demand in the coming years. 

Apart from this, the recent US Dollar (USD) upswing to its highest level since early August, triggered by expectations for a less aggressive policy easing by the Federal Reserve (Fed), contributes to capping the upside for Crude Oil prices. That said, the risk of a further escalation in the Middle East conflict, which could impact supply in the key oil-producing region, offers some support to the black liquid. This, in turn, warrants some caution for bearish traders and positioning for an extension of the recent sharp retracement slide from the vicinity of the $78.00 mark, or a nearly two-month high touched on October 8.

• The Oil price recovers to near $70.00 after PBoC’s bigger-than-expected cut in its Loan Price Rate.
• Iranian oil and nuclear facilities are expected to remain safe from Israel’s attack.
• Investors await the S&P Global PMI for fresh guidance on the Oil demand outlook.

West Texas Intermediate (WTI), futures on NYMEX, bounces back to near $70.00 in Monday’s European session. The Oil price recovers strongly after a big boost from the People’s Bank of China’s (PBoC) larger-than-projected dovish decision on interest rates.

The PBoC cuts its one-year Loan Prime Rate by 25 basis points (bps) to 3.1%, with an intention to uplift economic growth, boosting spending and revive the realty sector. Additionally, the Chinese central bank cut the five-year LPR from 3.85% to 3.60%. Economists expected the PBoC to reduce its key borrowing rates by 20 bps. 

A larger-than-usual PBoC interest rate cut has improved the Oil demand outlook as China is the largest importer of the black gold in the world. The overall action in the Oil price remained bearish in the past week as Beijing didn’t provide clarity on how the massive stimulus by China’s ministry will be allocated.

On the geopolitical front, comments from Israeli Prime Minister Benjamin Netanyahu last week that they will not attack on Iran’s non-military sites, which pointed to safety of Iran’s oil and nuclear facilities, has diminished fears of supply disruption.

Going forward, the Oil price will be influenced by the preliminary S&P Global Purchasing Managers’ Index (PMI) data for October of various nations, which will be published on Thursday.

• WTI could receive support as PBoC rate cuts could stimulate China’s economic activity, potentially increasing Oil demand.
• US President Joe Biden stated that there is an opportunity to end the conflict between Israel and Iran for a while.
• Shell and Singapore's Maritime and Port Authority have implemented clean-up measures in response to a leak from a land-based pipeline.

West Texas Intermediate (WTI) Oil price edges higher following a more than 7% decline registered in the previous week, trading around $68.90 per barrel during the Asian hours on Monday. However, the downside may be limited as rate cuts in China, the largest Oil importer, are expected to stimulate domestic economic activity, potentially increasing demand for Oil. The People's Bank of China (PBoC) lowered the 1-year Loan Prime Rate (LPR) to 3.10% from 3.35% and the 5-year LPR to 3.6% from 3.85%, aligning with expectations.

However, crude Oil prices received downward pressure, partly due to slowing economic growth in China. On Friday, China’s Gross Domestic Product (GDP) grew at an annual rate of 4.6% in the third quarter of 2024, slightly down from the 4.7% growth recorded in the second quarter but surpassing market expectations of 4.5%.

Additionally, easing geopolitical tensions in the Middle East have lessened concerns over supply disruptions from the region. US President Joe Biden stated on Friday that there is an opportunity to "deal with Israel and Iran in a way that ends the conflict for a while." However, on Sunday, Israel announced that it was preparing to target sites in Beirut linked to Hezbollah's financial operations, according to Reuters.

In another development, Reuters reported that Shell and Singapore's Maritime and Port Authority implemented clean-up measures following a leak from a land-based pipeline. The leak has reportedly been contained at the source, with no impact on navigation safety. A Shell spokesperson confirmed the leak at the Shell Energy and Chemicals Park, stating that emergency response specialists had been dispatched to manage the situation.

• WTI gained ground due to an unexpected drop in US Oil inventories.
• US Crude Oil Stock declined by 2.192 million barrels in the previous week, against the expected 2.3-million-barrel increase.
• Israel's military and the Shin Bet security service confirmed the killing of the militant leader Yahya Sinwar on Wednesday.

West Texas Intermediate (WTI) Oil price extends its gains for the second consecutive day, trading around $70.40 per barrel during Asian hours on Friday. The rise in crude Oil prices was supported by an unexpected drop in US Oil inventories.

According to the Energy Information Administration (EIA), US Crude Oil Stock fell by 2.192 million barrels in the week ending October 11, defying market expectations of a 2.3 million barrel increase and contrasting with the previous week's 5.81 million barrel rise.

In addition to the drop in US Oil inventories, rising tensions in the Middle East are providing further support for Oil prices. Israel's military and the Shin Bet security service confirmed on Thursday that Yahya Sinwar, the Gaza Strip Chief of the Palestinian Islamist group Hamas, was killed by Israeli forces during an operation in southern Gaza on Wednesday.

The killing of Sinwar has heightened concerns, especially among the families of Israeli hostages taken to Gaza by Hamas, who fear their loved ones may now be in greater danger following the killing of the militant leader, according to Reuters.

However, the upside potential for WTI Oil prices may be limited as the EIA report showed that US crude Oil production reached a record high of 13.5 million barrels per day last week. Additionally, Libyan Oil output has resumed, and the Organization of the Petroleum Exporting Countries and their allies (OPEC+) have plans to further unwind production cuts in 2025, as reported by Reuters.

On Tuesday, the International Energy Agency (IEA) indicated that the global Oil market is heading for a significant surplus in the coming year. While world Oil demand is expected to rise by 860,000 barrels per day in 2024, this is a downward revision of 40,000 barrels per day from the previous forecast. The IEA attributed this to slower economic growth in China and a shift toward electric vehicles, which have begun to reshape the Oil demand outlook for China, the world's largest Oil importer.

• WTI price loses ground to around $70.70 in Thursday’s early Asian session. 
• Easing fears of an oil supply disruption in the Middle East, sluggish global oil demand outlook weigh on the WTI price. 
• Any positive development surrounding more Chinese fresh stimulus plans could cap the WTI’s downside. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $70.70 on Thursday. The WTI price edges lower after selling off on reports that Israel will not attack Iran’s oil facilities.

Israel told the United States that a planned retaliatory attack on Iran won’t target nuclear and oil facilities, according to senior Biden administration officials, a promise sought by the White House to head off further Middle East escalation and to avoid a potential oil price increase, per the Wall Street Journal. Traders will closely watch the developments surrounding the geopolitical tensions in the Middle East. Any signs of escalation could lift the WTI price. 

US crude oil inventories rose more than expected last week. According to the American Petroleum Institute (API), crude oil stockpiles in the United States for the week ending October 11 fell by 1.58 million barrels, compared to a rise of 10.9 million barrels in the previous week. The market consensus estimated that stocks would increase by 2.3 million barrels.

The Organisation of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (EIA) this week cut their 2024 global oil demand growth forecasts. The IEA estimated global oil demand to grow 1.2 million barrels per day to 104.3 million bpd next year, about 300,000 bpd below prior forecasts. Furthermore, stimulus measures in China fail to boost the black gold price. 

"On the top of every ardent bear's wish list are a stuttering Chinese economy, relative calm in the Near East, and downward revisions in global oil demand growth. These wishes were granted at the beginning of the week," noted Tamas Varga, an analyst at TP ICAP.

The Chinese officials will hold a joint briefing at 2.00 GMT on Thursday on potential measures to support the economy. Additional fresh stimulus plans from China, the top largest consumer of oil in the world, could provide some support to the WTI price in the near term. 

• WTI remains on the back foot near a two-week low and is pressured by a combination of factors.
• Easing fears of supply disruptions and demand concerns continue to weigh on the black liquid.
• Bets for smaller Fed rate cuts underpin the USD and support prospects for a further downfall.

West Texas Intermediate (WTI) US Crude Oil prices struggle to capitalize on the overnight modest bounce from the $69.25 area, or a two-week low and attract some sellers during the Asian session on Wednesday. The commodity currently trades around the $70.25 region, down 0.30% for the day, and seems vulnerable to decline further. 

Despite worries about an escalation of conflict in the Middle East, reports that Israel would not strike Iranian nuclear and oil sites eased fears of a supply disruption. This comes on top of a fall in China's oil imports for the fifth straight month raised concerns about weak demand in the world's top importer. Adding to this, OPEC lowered its forecast for global oil demand growth in 2024 and 2025 and in turn, validates the negative outlook for Crude Oil prices. 

Meanwhile, the US Dollar (USD) stands tall near its highest level since August 8 amid firming expectations for a less aggressive policy easing by the Federal Reserve (Fed) and bets for a regular 25 basis points (bps) interest rate cut in November. A stronger buck tends to undermine demand for USD-denominated commodities and supports prospects for an extension of the recent fall from the vicinity of the $78.00 mark, or the monthly peak touched last week.