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Oil finishes the day strong to end $1 higher as it caps fourth straight week of gains

There are strong signs of travel demand in the US this 4th long weekend, with air bookings setting records. Combine that with a big draw in US inventories in today’s report and a hurricane in the Atlantic and gold finished the week strong.

There was something of a ‘sell the fact’ trade immediately after the 12 million barrel inventory draw but WTI steadied at $82.50 and climbed more than $1.30 from there to settle on the highs.

The weekly chart shows some consolidation, despite four weeks of gains.

I think there are looming signs of a cyclical slowdown — including today’s ISM services number — but for now the focus is on a tighter market due to OPEC+ delivering on production curbs.

This article was written by Adam Button at www.forexlive.com.

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