WTI crude touches a fresh 2023 high but settles lower

<p>Oil touched a fresh high this year of $89.64 but profit taking ahead of the big figure capped the gains and oil fell into settlement, with WTI finishing down 32 cents.</p><p>Before that, it was a choppy day for crude as it slipped ahead of the weekly oil inventory report only to rally afterwards despite a surprisingly large build in US stockpiles. EIA crude inventories rose by 3.954 million barrels compared to a draw of 1.912 million forecast. The gasoline and distillates numbers were also bearish.</p><p>In the aftermath of the report, crude rose to $89.40 from $88.50 but couldn't take out the early European high of $89.64 and that led to a round of profit taking later in the day.</p><p>It's hardly fatal for the oil bulls though as this is just the third daily decline since August 23 and all of them have been modest. The market is increasingly convinced that OPEC+ supply will keep the market tight. The latest STEO report suggested a 3 million barrel per day deficit in global supply in Q4. That will ensure a sharp drawdown in global inventories, even if China has some excess.</p>

This article was written by Adam Button at www.forexlive.com.