Why is WTI up this morning? - July 31

[dan_s]

Trading Economic:
"Oil prices soared on Wednesday, with WTI crude futures rising over 3% to $77.1 a barrel, due to concerns about potential supply disruptions as tensions in the Middle East mount. Hamas leader Ismail Haniyeh was assassinated in Tehran early Wednesday, following Israel's claim of killing Hezbollah's top commander in a Beirut airstrike on Tuesday in response to a weekend attack on the Golan Heights. Iran vowed revenge, saying Israel will “pay a heavy price". Meanwhile, API data showed that US crude oil inventories decreased by 4.5 million barrels last week, marking the fifth consecutive week of falling inventories and the largest decline of the month. Official EIA data is due later in the day. Nevertheless, lingering demand concerns for top oil consumer China are preventing further price increases. China’s total fuel oil imports dropped 11% in the first half of 2024, signaling a decline in oil demand from one of the world's top consumers."

Or maybe there was strong support at $75 and one large short covered after seeing API report another large draw from U.S. crude oil inventories, which caused a lot more shorts to cover. Computers do the majority of the NYMEX futures trades.