- Crude oil prices climbed to their highest in more than a month, extending gains on growing evidence of disruptions to crude supply from Iran and Venezuela and after a fall in U.S. inventories.
- October WTI crude topped $70/bbl for the first time since July, +1.1% to settle at $70.25/bbl, while October Brent crude added 0.8% to $77.77/bbl.
- WTI prices held on to their U.S. supply data inspired gains from yesterday, “but the primary bullish factor remains rooted in Iran sanctions,” says Stephen Innes, head of trading at OANDA, as Iran reportedly has threatened to halt the flow of oil through the Strait of Hormuz.
- “There are pretty good tailwinds here that will keep people jumping on board,” says Mizuho's director of futures Bob Yawger, adding that Brent’s wide premium to WTI likely will encourage exports of U.S. crude, keeping U.S. inventories lower and boosting activity.
- Meanwhile, natural gas futures ended with a modest gain after the EIA reported U.S. inventories rose by 70B cf for the week ended Aug. 24, higher than the 64B cf analyst consensus increase.
- ETFs: USO, UNG, OIL, UGAZ, UWT, DGAZ, UCO, DWT, SCO, BNO, BOIL, DBO, DTO, USL, KOLD, UNL, DNO, OLO, SZO, DCNG, OLEM, WTIU, OILK, OILX, WTID, USOI, USOU, GAZB, USOD, OILD, OILU, USAI
- Now read: Crude Oil Makes Another New High This Week
Original article