Oil Prices Test Resistance Following Massive US Inventory Draw and Hormuz Risks

Key Facts

U.S. crude oil inventories saw a significant draw of 8.6 million barrels according to EIA data. FX Empire reported that geopolitical tensions in the Strait of Hormuz continue to support crude prices above the $95.19 level. Prices are currently testing resistance levels near $98.23 following the massive inventory decline and heightened regional risks.

The combination of tightening physical supply in the U.S. and potential disruptions in Middle East shipping routes is driving bullish sentiment in energy markets. According to FX Empire, U.S. natural gas inventories currently stand at 3,567 billion cubic feet, which is approximately 4% less than the same period last year, further tightening the overall energy complex.