WTI Crude reverses losses, jumps 11% in October

The West Texas Intermediate (WTI) crude futures reversed earlier losses to settle 0.9% higher at 83.57 per barrel in the last session of October, close to a seven-year high of $85.41 hit on Monday, on expectations that OPEC+ would maintain production cuts during next Thursday’s meeting.

For the month, oil prices jumped more than 11%, as demand received a boost from a double whammy of coal and natural gas shortages in Europe and Asia, while OPEC+ nations kept supplies tight.

The oil producer group sees world oil inventories declining by an average of 1.1 million barrels a day until the end of the year.

Still, concerns about a larger-than-expected addition in US crude oil inventories last week and a likely return of Iranian oil to the markets, caused the contract to fall about 0.6% on a weekly basis, snapping a nine consecutive weekly rally.

The West Texas Intermediate (WTI) benchmark for US crude is the world’s most actively traded commodity.

Source: Trading Economics