New York, Aug 18 – The price of Texas intermediate oil (WTI) opened this Thursday with a rise of 1.31% and stood at 89.26 dollars a barrel, thus continuing the momentum obtained by a much larger-than-expected decline in US crude oil inventories thanks to strong growth in exports.
At 09:00 New York local time (13:00 GMT), WTI futures contracts for delivery in September added $1.15 from the close of the previous session.
Yesterday, the Energy Information Administration (EIA) announced that US commercial crude oil stocks fell 7.1 million barrels in the week ending August 12, to 425 million barrels, and that crude oil exports from the US reached 5 million barrels per day.
A news that investors celebrated after a week of negative data for black gold.
On Monday, the price of crude fell below $90 a barrel due to poor economic data from major oil buyer China.
Fear of a global recession increased yesterday after the United Kingdom announced that the consumer price index (CPI) stood at 10.1% in July, compared to 9.4% the previous month, so it is at the highest level in more than 40 years.
On the oil supply front, the market is awaiting developments in talks to revive Iran’s 2015 nuclear deal with world powers, which could eventually lead to a boost in Iranian oil exports if come to an agreement.
“We expect oil to stabilize in the mid-$80s, but any upside is likely to be capped by resistance near $95 a barrel,” analyst Tom Essaye wrote in a report by Sevens Report.