WTI crude futures extended gains to 4% to trade above $81.5 per barrel on Wednesday, moving further away from 9-month lows touched at $76 earlier in the week, supported by concerns about tight global supplies and after the EIA reported an unexpected drop in US crude inventories, the first decline in a month. According to offshore regulator the Bureau of Safety and Environmental Enforcement, about 190,000 barrels per day of US crude output, or 11% of the Gulf’s total, were cut due to Hurricane Ian. There are also concerns that OPEC+ may cut output to shore up prices, with Moscow reportedly lobbying the group to slash production by about 1 million barrels a day. Still, the oil market is down about 25% in the third quarter of the year, the first drop in more than two years, as tightening financial conditions aimed at bringing down high inflation exacerbated the risk of a global recession that could hurt energy demand, while a stronger dollar further rattled markets.
