Crude Oil Prices Surge Due to Decreased Inventories and Indications of Increased Energy Demand

Crude and Gasoline Price Movements: October WTI crude oil closed up 1.29% and RBOB gasoline rose by 1.43%, reaching two-week and 2.5-week highs respectively, supported by falling inventories and strong global manufacturing activity.

Global Manufacturing Impact: The unexpected rise in the US and Eurozone S&P manufacturing PMIs to three-year highs indicates increased energy demand, contributing positively to crude prices.

OPEC Production Concerns: OPEC+ plans to increase crude production by 547,000 bpd starting September 1, which raises concerns about oversupply despite a recent decline in July production.

US Oil Inventory Trends: Recent EIA reports show US crude and gasoline inventories below seasonal averages, while crude oil stored on tankers has decreased, suggesting bullish trends for oil prices.