West Texas Intermediate (WTI) crude futures in New York closed more than 2% higher on Wednesday (July 17), supported by a larger-than-expected drawdown in weekly U.S. crude inventories. The positive factor was the weaker dollar.
- The West Texas Intermediate crude contract is due for delivery in August. Oil prices rose $2.09, or 2.59%, to close at $82.85 a barrel.
- Brent crude (BRENT) will be delivered in September. Oil prices rose $1.35, or 1.61%, to close at $85.08 a barrel.
The U.S. Energy Information Administration said weekly crude inventories fell by 4.9 million barrels, more than analysts' expectations in a Reuters poll of 30,000 barrels and more than the 4.4 million barrel decline reported by the American Petroleum Institute.
Moreover, the weaker dollar is also supporting the market. With crude oil contracts priced in dollars, they are cheaper and more attractive for investors holding other currencies. The dollar index, which measures the greenback’s movement against six major currencies, fell 0.5% to 103.747.
A weaker dollar and a bigger-than-expected drawdown in U.S. crude oil inventories helped mask negative sentiment from a report from China’s National Bureau of Statistics, which said China’s gross domestic product expanded just 4.7% in the second quarter of 2024, below analysts’ expectations of a 5.1% expansion and slower than the 5.3% expansion in the first quarter of 2024.
By InfoQuest News Agency (July 18, 2024)
Tags: WTI, WTI, Oil Price
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