Crude Oil Prices Surge to $95, Tight Supply Sparks Short Entry Opportunity

WTI crude futures surged above $93 per barrel on Thursday, reaching a 14-month high of $95. This spike was driven by a significant drop in US crude stockpiles, intensifying concerns about global supply constraints. Official data revealed a substantial 2.2 million-barrel decrease in US crude inventories last week, far exceeding the market’s expected draw of 320,000 barrels. Additionally, crude stocks at the pivotal Cushing, Oklahoma storage hub hit their lowest levels since July 2022.

These developments compound the existing challenges in the global supply landscape, particularly as OPEC+ heavyweights Saudi Arabia and Russia have extended supply cuts through the end of the year. Adding to the market’s uncertainty, the Russian government has signaled potential restrictions on grey fuel exports and an increase in fuel export duties for resellers.

In the price chart it’s clear that bears are stronger, and bulls are weaker. We are in a favorable position for opening short (selling) positions.