Oil remained near its highest level over the past nine months on Thursday as investors braced themselves for the release of a key U.S. inflation report later in the day.
West Texas Intermediate futures remained above $84 per barrel after gaining 3% over the past two trading sessions. This recent showing of strength is expected to have a noticeable impact on the consumer price index, which the Federal Reserve will look to for guidance when reviewing its monetary policy at its next meeting.
The oil sector received a major boost from a rise in demand from Asia, with refiners purchasing at least 24 million barrels of US crude for November arrival according to traders, the second consecutive monthly rise in order for US suppliers.
“Hot money continues to flow into the oil complex,” Keshav Lohiya, founder of consultant Oilytics observed. “The question remains if this is just a beginning of speculative money flowing in or a bull trap before the majority of market participants return in September.”