- Western Texas Intermediate (WTI) rises as the winter season approaches, increases demand for energy products.
- OPEC+ decision was based on the belief that oil demand will wane once other energy markets stabilize.
- US Baker Hughes Rig Count for the week ending on October 15 increased to 543 from the estimated.
Western Texas Intermediate (WTI) is climbing for the seventh day in a row, gains 0.95%, is trading at $81.71 during the New York session at the time of writing. As the winter season for the northern hemisphere approaches, the shortage of gas and coal is spurring the demand for oil products.
Furthermore, the Organization of Petroleum Exporting Countries and its allies (OPEC+) stick to the 400K crude oil increase, despite efforts from the White House to expand it. According to delegates, in the last week, the group’s decision to keep their stance was based on the belief that the current tightness in the oil market is temporary and will pass once the gas, NGL, and coal markets stabilize.
In the meantime, the US Dollar Index is advancing 0.01%, sitting at 93.99, capped the upside move in the black gold, as a stronger dollar usually contains any upside reactions in the WTI price.
Meanwhile, the US Baker Hughes Rig Count increased to 543, more than the 540 estimates. Oil rigs increased to 445, from 433, 8 more than the expected, whereas Gas rigs decreased to 98 from 99, 2 less than foreseen.
The market’s reaction was seen an hour before the release when WTI dipped to $81.16. Once the Rig Count was known, WTI bounced off the day lows to settle around the $81.50-60 area.
WTI KEY ADDITIONAL LEVELS TO WATCH