- West Texas Intermediate traded just shy of $72/Bbl Wednesday morning following a broad asset class rally the day prior
- The bulls were supported by the energy crunch in Europe and an API report that pointed to another decrease in U.S. stockpiles
- However, pessimism remains as the Omicron variant has continued to be a cloud over the market
- Europe’s high energy costs have raised the prospect of greater demand for oil products in power generation (BBG)
- Natural gas prices in Europe surged after Russia curbed flows, forcing some European nations to burn oil
- The American Petroleum Institute (API) reported U.S. crude stocks declined by 3.67 MMBbl last week
- If confirmed by government data later today, it would be a fourth weekly draw