Crude oil inched higher
After posting moderate gains on Tuesday, September 20, crude oil prices inched higher on Wednesday, September 21, amid a drop in inventory levels. At 1:20 PM EDT on Wednesday, September 21, the WTI crude oil futures contract for November delivery was trading at $45.12 per barrel, a gain of ~2.4%. The Brent crude futures contract for November delivery gained ~1.9% to $46.74 per barrel.
Inventories declined for third consecutive week
The crude oil inventory levels declined for the third consecutive week, according to data released by the Energy Information Administration (or EIA).
At 10:30 AM EDT on Wednesday, September 21, the EIA reported that the crude oil inventory levels fell by 6.2 million barrels in the week ended September 16. This is better than the market’s expectations of a buildup in inventories by 3.4 million barrels.
On Tuesday, September 20, the American Petroleum Institute (or API) reported that crude oil inventories fell by 7.5 million barrels in the week ended September 16. These reports gave support to the crude oil prices to move to their highest price levels in a week on September 21.
In addition to the supporting inventory reports, crude oil prices also took support from the oil service workers’ strike in Norway. The market is also awaiting the producers and consumers meeting scheduled for September 26–28 in Algeria amid increasing speculations over output freeze talks.
Crude oil started the day on a positive note due to the API inventory report and got stronger as the day progressed. Please read Why Is Crude Oil Stronger Early on September 21? to learn how crude oil performed in Wednesday’s early hours.
At 1:40 PM EDT on September 21, major crude oil producers Carrizo Oil & Gas (CRZO), Canadian Natural Resources (CNQ), Total S.A. (TOT), and British Petroleum (BP) rose ~2.9%, ~1%, ~0.44%, and ~0.67%, respectively. The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) and the PowerShares DB Oil ETF (DBO) fell ~2.1% and ~1.8%, respectively.
The following article details the performance of copper on Wednesday, September 21.