WTI Oil Prices Drop Amid Recovering Exports and Rising US Inventories

WTI oil prices have been declining, dropping from around $97 to $94.2 per barrel on September 29.

The short-term structure of WTI has deteriorated noticeably, with the price moving below all major moving averages and forming a lower high after recent recoveries.

The rising U.S. inventories are adding pressure to prices, with commercial crude oil inventories increasing by 2.97 million barrels to 426.4 million, and Cushing inventories growing by around 2.27 million barrels to 23.75 million.

However, gasoline and distillate inventories declined, suggesting a better picture for end demand than the crude oil data suggest.

The main change in the Middle East is that oil flows through the Strait of Hormuz are recovering, with an increase in tankers passing through and Saudi Arabia using its East-West pipeline to move volumes toward the Red Sea.