WTI crude oil price plummeted to as low as 72.39 after Dubai's attempt to delay its debt repayments. Investors turned cautious as the news raised concerns on global economic recovery and hence improvement in energy demands. However, the black gold, as well as other risky assets, rebounded strongly and closed almost flat from Thursday. Over the week, the benchmark contract for crude oil slid -1.8% to settle at 76.05.
Although crude oil continued to move within the recently established range of 75-80, its trading momentum has clearly shown fatigue. Moreover, price movement has derailed from weakness in USD. We believe this has been driven by the sluggish fundamental outlook on the energy market.
Released by the US Energy Department, crude oil inventory rose +1.02 mmb to 337.8 mmb in the week ended November 20 as driven by builds at the Gulf Coast. Imports bounced back as operations resumed after Hurricane Ida. Builds in the Midwest was mainly driven by Cushing inventory while surged +1.2 mmb to 29.5 mmb.
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