The retrograde rise of WTI futures reached a high level for the first time in 8 months, a sign of tight supply

Crude oil futures on Thursday showed an unstable movement, as they were above or below the flat line, although partially offset by increases in gasoline and distillate oil inventories after a sharp rise due to a decline in US crude oil inventories that were more than expected the day before.

Despite US crude oil inventories falling by 4.9 million barrels, sluggish demand for gasoline in the US is holding back the rise in crude oil prices, John Kilduff of Again Capital told Reuters.

“The reality on the ground is that there is a possibility that the economic slowdown will soften demand for crude oil,” Kilduff said.

According to Dow Jones, Peter Cardillo of Spartan Capital said, “Despite product inventories being piled up, crude oil inventories are declining, so the spot is once again aiming for the middle to the second half of the 80 dollar range.”

Increased observations that the US Federal Reserve (Fed) will cut interest rates in September are also supporting the rise in crude oil, but since concerns about the growth of China, which is the world's largest crude oil importer, are deepening, bullish sentiment is weakening.

The previous monthly price of Nymex crude oil (CL1:COM) for August depreciated by 0.03 dollars to 82.82 dollars/barrel, and the previous monthly price of Brent crude oil (CO1:COM) for September was $85.11 per barrel, which was 0.03 dollars higher.

According to what Reuters reported by quoting LSEG data, the premium on US crude oil futures futures for 2-month futures has expanded to a high level since October.

UBS analyst Giovanni Staunovo told Reuters that “the strengthening of backwardness shows that market participants anticipate a further decline in Cushing's inventory.”

According to what the U.S. Energy Information Administration announced, Cushing's crude oil inventory, excluding strategic oil reserve barrels, fell by 8.75 million barrels in the week ending 7/12 to 32.66 million barrels, which is the lowest level since April.