There are strong signs of travel demand in the US this 4th long weekend, with air bookings setting records. Combine that with a big draw in US inventories in today’s report and a hurricane in the Atlantic and gold finished the week strong.
There was something of a ‘sell the fact’ trade immediately after the 12 million barrel inventory draw but WTI steadied at $82.50 and climbed more than $1.30 from there to settle on the highs.
The weekly chart shows some consolidation, despite four weeks of gains.
WTI crude oil weekly
I think there are looming signs of a cyclical slowdown — including today’s ISM services number — but for now the focus is on a tighter market due to OPEC+ delivering on production curbs.
