Why did WTI finish higher on July 3

[dan_s]

WTI stays above $74 after API data shows larger-than-expected draw in crude inventories

Crude oil prices fluctuated wildly on Monday with the barrel of West Texas Intermediate (WTI) dropping sharply after reaching its highest level since 2014 November at $75.25.

As the trading volume thinned out in the NA session, the barrel of WTI settled a20 cents higher $74.17 and moved up to $74.30 in after hours trading.

The weekly report released by the American Petroleum Institute on Tuesday showed that crude inventories in the United States fell by 4.5 million barrels during the week ending June 29 to 416.9 million, compared with Reuters' estimate for a draw of 3.5 million barrels. The barrel of WTI rose slightly on the data in the post-settlement trade and was last seen at $74.30. Due to Independence Day holiday, the weekly EIA stock report will be published on Thursday.

Earlier today, crude oil prices extended their recent rally as Libya declared force majeure on exports from its two major ports, bringing down its daily supply by an approximate amount of 850,000 barrels per day. However, the bullish momentum lost its strength in the NA session and forced the barrel of WTI to retrace its gains.

Although there were no clear catalysts behind that sudden drop, profit-taking on rumors of Canada's Syncrude facility, which was expected to stay offline until the end of July, resuming activity as early as next week seems to have weighed on prices. The weekly EIA stock report will be published on Thursday.