WTI advances to fresh two-week highs above $58.70 following EIA report

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  • EIA says crude oil inventories in US declined by 8.5 million barrels. 
  • Libya’s National Oil Corp declares force majeure on Sharara crude oil loading.
  • Positive headlines surrounding US-China trade talks provide a boost to commodities.

Crude oil prices gained traction in the last hour after the weekly report published b the US Energy Information Administration showed a larger-than-expected draw in the US crude oil inventories. As of writing, the barrel of West Texas Intermediate, which reached its highest level in two weeks $58.80, was trading at $58.75, adding 0.72% on a daily basis.

EIA data lifts WTI higher

According to the EIA, crude oil inventories in the US declined by 8.5 million barrels during the week ending July 26 compared to analysts’ estimate for a draw of 2.6 million barrels. Additionally, Reuters today reported that Libya’s National Oil Corp declared force majeure on Sharara crude oil loadings on Wednesday, hinting at supply disruptions and supporting crude oil’s rally.

In the meantime, the latest headlines surrounding the US-China trade negotiations suggested that this week’s high-level talks in Shanghai were constructive, easing concerns over a dismal global oil demand outlook. Furthermore, White House announced that the next round of talks was expected to take place in early September in Washington.

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