Crude oil prices rally on US inventory drawdown, energized risk-appetite

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On Wednesday, both US WTI (West Texas Intermediate) and UK crude oil futures’ prices gained ground followed by a larger-than-expected US crude inventory drawdown, while soothing comments on Omicron’s fiscal consequences had added to further bullish breeze.

Aside from that, earlier in the day, Government data had unveiled that US third-quarter economic growth had been revised higher, while a Conference Board survey report had illustrated that its index for US consumer confidence soared to 115.8 last month, illustrating prospects of a robust consumers’ spending deeper into next year.

Besides, US EIA (Energy Information Administration) data had unfurled that US crude oil inventories dropped to 4.7 million barrels last week, missing an analysts’ estimate which eventually had eased worries of a crude oil surplus on Q1, 2022 up to some extent.

Feathering up investors’ optimism further, the US FDA (Food and Drug Safety Administration) had authorized uses of Pfizer Inc’s pandemic oral Rx, while a study conducted by a perspicacious bunch of S. African physicians had unfurled that the people infected with Omicron variant would face off a much-reduced risk of hospitalization compared to those of alpha, beta of delta variants.

Besides, White House said in a statement that it would continue talks with Democratic Senator Joe Manchin over his opposition on President Biden’s $1.75 trillion infrastructure bill, which eventually perked up risk-appetite.

However, an opposition from Manchin in effect would deal a fatal blow to Biden’s trillion-dollar proposal given the scale of a mostly party-lined US Senate, which currently houses 48 Democrats, 50 Republicans and 2 independent Senators.

Crude oil gains as US crude invent0ory declines

Citing statistics, in the day’s commodity market wind-down, UK crude oil futures’ prices rose 1.8 per cent to $75.29 per barrel, while US WTI (West Texas Intermediate) crude oil futures’ prices settled the day 2.23 per cent higher at $72.76 a barrel.

Meanwhile, addressing to US EIA report, a senior analyst at Price Futures Group in Chicago, Phil Flynn said, “We saw a drop in production, we saw inventories and crude fall, so that’s giving the market a supportive outlook.

Because supplies are below average across the board, there’s not a lot of room for error”.