October Nymex WTI prices are trading higher Thursday extending their gains from the previous session. October WTI ended Wednesday’s session 42 cents higher at $97.26 a barrel underpinned by EIA data which showed a larger than expected draw in crude for the week of Aug 17. Prices also received a boost upon the release of the FOMC minutes for the July/August meeting which were dovish in tone and strongly suggested that the Federal Reserve would embark upon some action at the September 12-13 meeting. The FOMC minutes lifted WTI prices out of a correction lower from $96.52 to $97.53 a barrel. Prices have held at session lows of $97.17 in Asia this morning despite some weaker than forecast HSBC flash Chinese PMI data which fell to 47.8 in August, its lowest level since November, from a reading of 49.5 in July. October WTI has since extended to the upside and has broken its initial intra-day high of $98.17 in the last few moments, currently on session highs of $98.27 a barrel, up $1.01 from Wednesday’s close.
EasyForexNews Research Team