Crude Oil Prices Bounce Beyond Four Weeks of Declines
After a bit of a wobble, the markets have leaned back into the green. Crude opened higher this Wednesday, pivoting on a two‑handed swing: a fresh dip in U.S. crude stockpiles and a fiery turn from Canada’s wildfire drama.
U.S. Inventory Countdown
- Crude drop: 3.9 million barrels skipped off the shelves through July 19, outpacing what the market had tipped for.
- Gasoline undershoot: 2.8 million barrels missing from the gauge.
- Distillate & Cushing trimmed: 1.5 million barrels lower for distillate, 1.6 million for Cushing.
Strategic Reserve Grows & Wildfire Worries Intensify
The Department of Energy padded the Strategic Petroleum Reserve by 0.7 million barrels, bringing the stash to a healthy 374.4 million barrels—its tallest point since December 2022.
Not to mention the Canadian wildfires, throwing a plateful of soot onto the production line and tightening the global supply pipe.
China’s Slowdown: A Dampener on the Boom
Markets are still keenly watching inventory figures and geopolitical twists, but a slower Chinese economy could cool the heat in crude prices, as demand takes a tiny breather.
Takeaway for Traders
- Inventory drains are a bullish signal—expect a price lift.
- Wildfire-driven cuts amplify uncertainty.
- China’s slowdown may curtail the rally, keeping price swings moderate.
