Oil’s recent rally came to a gradual halt on Wednesday as investors await official U.S. inventory data following OPEC+’s decision to impose an unexpected cut in production.
West Texas Intermediate, the U.S. benchmark, held steady at around $80 per barrel after closing at its highest level in 10 weeks during the previous session. Over the past two sessions, crude rallied by almost 7% following the surprising output cut by OPEC+ and its allies. Following crude’s recent rally, leading banks expressed the belief that crude could once again reach over $100 per barrel.
The industry-funded American Petroleum Institute reported that U.S. crude stockpiles had fallen by 4.3 million barrels, including a drop at the key storage hub in Cushing, Oklahoma. While an indication of what could be expected from the official government report, investors are awaiting the releases of the US Energy Information Administration’s figures later in the day for confirmation.
Oil has rallied by over 20% since hitting lows in March following the start of the banking crisis that dissuaded investors from taking significant risks.