U.S. crude oil futures staged a comeback Wednesday as the stock market rallied.
For instance, the Dow Jones Industrials gained 400 points mid-morning, while the S & P 500 rose 1.5%.
Data released Wednesday by the Energy Information Administration showed crude oil stocks in the U.S. fell by 3.7 million barrels last week, while gasoline inventories rose by 1.3 million barrels.
West Texas Intermediate: September contract: $75.25 per barrel, up $2.05, or 2.8%. Year to date, U.S. crude oil has gained about 5%.
Brent October contract: $78.42 per barrel, up $1.94, or 2.54%. Year to date, the global benchmark is ahead 1.87%.
RBOB Gasoline: September contract: $2.35 per gallon, up nearly 3 cents, or 1.2%. Year to date, gasoline is up 11.9%.
Natural Gas: September contract: $2.08 per thousand cubic feet, up nearly 8 cents, or 3.78%. Year to date, gas is down about 17%.
Recession fears had also put downward pressure on the oil market, but escalating tensions in the Middle East and ongoing production cuts by OPEC+ have provided a floor for prices.
Brent should maintain a floor of $75 per barrel and will find support as the risk of a recession is limited and oil demand is resilient in the West and solid in India, according to a Goldman Sachs note this week.
