DTN Oil Update
Oil Rallies Despite US CPI Rising in September
SECAUCUS, N.J. (DTN) -- Oil futures rose for a fifth straight session on Friday, Oct. 24, setting WTI and Brent up for their biggest weekly rise since June.
NYMEX WTI futures for December delivery were up $0.13, or 0.3%, to $61.92 bbl. The ICE Brent crude futures contract for December delivery rose $0.19, or 0.3%, to $66.19 bbl.
For the week, WTI was up 9% and Brent 8% for their biggest weekly advance since the first week of June.
November RBOB gasoline futures eased $0.0011 to $1.9258 gallon, while the front-month ULSD futures contract fell $0.0028 to $2.3802 gallon.
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The U.S. Dollar Index slid 0.084 points to 98.645 against a basket of foreign currencies.
Oil prices conceded some of their advance after the Bureau of Labor Statistics data released this morning showed September U.S. inflation was higher than in August. However, it was below market expectations.
The U.S. Consumer Price Index increased 0.3% in September, after rising 0.4% in August, bringing the annual rate of inflation for the all-items index to 3%, BLS reported.
While the annual inflation reading was higher than the 2.9% in the prior month, it was lower than market expectations for a year-on-year growth of 3.1% for the CPI.
This week's oil rally follows three prior weeks of losses and was driven by fresh U.S. sanctions on Russia's oil trade and reports of a decline in commercial crude inventories last week.
The run-up began after the U.S. Energy Information Administration's data on Wednesday, Oct. 22, showed drawdowns in stockpiles of crude, gasoline and distillates for the week ended Oct. 17.
Crude oil inventories fell last week for the first time in four weeks, decreasing by 1 million bbl to 422.8 million bbl, EIA data showed.
Gasoline stocks fell by 2.1 million bbl to 216.7 million bbl. Distillate fuel oil inventories slid by 1.4 million bbl to 115.6 million bbl, adding to the prior week's 4.6 million bbl draw.
The bullish sentiment in oil intensified on Thursday, Oct. 23, as traders reacted to the U.S. Department of the Treasury's new sanctions against Russian energy firms Rosneft and Lukoil.
The U.S. has imposed numerous sanctions on Russia's energy and oil trade since the invasion of Ukraine in 2022. The latest measures block all property and interests associated with Rosneft and Lukoil in the United States or under the control of U.S. persons.
Separately, the European Union approved on Thursday its 19th sanctions package against Russia, including a phased ban on Russian LNG imports and further restrictions targeting vessels and financial transactions linked to Moscow's oil network.