Crude oil closes higher as crude inventories fall and weak dollar boosts buying

Crude oil futures closed higher on Wednesday (Sept. 28) after the U.S. reported a decline in crude oil inventories last week. This indicates that oil demand continues to recover. The market was also helped by a weaker dollar and the impact of Hurricane Ian on the Gulf of Mexico.

  • WTI crude futures rose $3.65, or 4.7%, to close at $82.15 a barrel.
  • BRENT crude futures were up $3.05, or 3.5%, at $89.32 a barrel.

Crude oil futures rose after the EIA reported a 215,000-barrel drop in U.S. crude inventories for the week ending Sept. 23, while analysts had expected a 443,000-barrel increase.

Gasoline inventories declined by 2.4 million barrels, as did refined oil inventories, including heating oil and diesel, which fell by 2.9 million barrels.

The market was also driven by the depreciation of the dollar. The dollar index, which measures the dollar’s movements against six major currencies in a basket of currencies, fell 1.31% overnight to 112.6080.

The weakening of the dollar has meant that crude oil contracts quoted in dollars have become cheaper for investors holding other currencies.

Crude oil futures also gained as Hurricane Ian, now a Category 4, could affect U.S. oil supplies in the Gulf of Mexico.

According to the Bureau of Safety and Environmental Enforcement (BSEE), approximately 9.12% of oil production and approximately 5.95% of natural gas production have been impacted by the effects of Hurricane Ian.

The Spot Market is Open

Thursday, September 29, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.00

81.76

-0.39

-0.47%

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