Oil jumped to a fresh one-year high as crude stockpiles in the largest U.S. storage hub dropped to the lowest since July 2022.

West Texas Intermediate settled above US$93 a barrel after inventories at Cushing, Oklahoma, dropped just below 22 million barrels, close to operational minimums. The premium for near-term barrels of U.S. benchmark West Texas Intermediate is trading at more than $2, the highest since July 2022, as the futures market reflects the physical tightness. 

While oil’s rally has rekindled talk of $100-crude, the gains had slowed over the past week. Key consumer India has noted the negative effects of higher prices on its economy, which raises some questions about demand next year.

Still, inventories have been falling in most regions. At the Cushing hub, tanks are operating at 25 per cent of capacity. 

“My fear in this market is we have de-stocked so much inventory,” Amrita Sen, co-founder and head of research at consultant Energy Aspects, told Bloomberg TV. “Right now, what’s going on in the U.S. — Cushing is dry.” 

Prices:

• WTI for November delivery rose $3.29 to settle at $93.68 a barrel in New York.
• Brent for November settlement climbed $2.59 to settle at $96.55 a barrel.