Oil prices closed higher on Wednesday, May 26 amid sluggish upward price action. Brent rose 0.37% to $68.57/bbl, while WTI gained 0.27% after retracing to a local high of $66/bbl.
Yesterday’s EIA petroleum status report showed a drawdown in crude inventories, giving the market a boost. US crude oil stockpiles fell by 1.66 mln bbl vs. the consensus forecast that called for a 1.05 mln bbl draw.
That said, expectations of increased oil supplies from Iran kept the market under pressure, with Brent off 0.57%, and WTI down 0.56% this morning. In line with our forecasts, the Brent price will continue to fluctuate today in the same range of $68-69/bbl.