Oil Rises to Top $75 as US Stockpiles Shrink More Than Expected

Trader Gunvor says market looks set to remain rangebound

US inventories fell 9.23 million barrels last week, EIA says

Oil rose to surpass a key psychological level after US stockpiles declined more than expected.

West Texas Intermediate advanced 1% to settle above $75 a barrel, after earlier jumping as much as 2% to the highest intraday price this year. The gain came after a government report showed US stockpiles fell by 9.23 million barrels last week. Inventories at the storage hub in Cushing, Oklahoma, declined by 2.01 million barrels.

Oil may struggle to remain above the key resistance band, with markets needing to see sustained drawdowns globally as well as “product draws to go along with the crude draws,” Matt Sallee, a portfolio manager at Tortoise, said in a phone interview.

Read more here: https://www.bloomberg.com/news/articles/2024-01-24/latest-oil-market-news-and-analysis-for-january-24