WTI Crude Oil futures saw a significant rally following reports of tightening supplies. US commercial crude inventories, according to the API, declined by 2.98 million barrels in the week ended October 17. The rally was extended after the EIA reported a drawdown of 960,000 barrels, countering expectations of an increase. Concerns about earlier declining crude prices are noted, as oil-dependent economies adjust strategies, with Saudi Arabia requiring $94 to $111 oil to balance its budget. Separately, US Natural Gas futures declined after an initial jump due to forecasts shifting cooler in the central and eastern US for late October, adding some near-term heating demand. Traders are also anticipating the next natural gas injection report of 78 BCF.
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