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Oil prices rallied to fresh 10-monthhighs today (9 straight days higher) as traders digested a decision by OPEC+ leaders Saudi Arabia and Russia to extend supply curbs through the end of the year.

The big question is – will we see inventory draws continuing

API

• Crude -5.2mm (-2.1mm exp)

• Cushing -1.4mm

• Gasoline -5.09mm (-1.2mm exp) – biggest draw since March

• Distillates +310k (-200k exp)

API reports a 5.2mm barrel inventory draw, bigger than expected and will be the 4th weekly draw in a row if it carries over to tomorrow' official data. A huge gasoline draw was also notable..

Source: Bloomberg

WTI was hovering around $87.50 into the API print and held gains after…

Goldman Sachs said that the moves by OPEC+ brought bullish risks to its outlook for prices, according to a report. The bank’s analysts outlined several scenarios, including one that saw Brent extending gains to above $100 a barrel, though they stressed that this wasn’t a base-case view.