WTI reaches fresh daily highs near $73.50

• WTI reaches fresh highs on improved risk appatite.
• US oil inventories falling to a three-year low have supported the bid.

West Texas Intermediate crude oil (WTI) is trading 1.67% higher after travelling from a low of $71.64 reaching a high of $73.47. This was a three-week high scored as tight inventories and the falling dollar have helped to lift prices.

The Energy Information Administration reported US oil inventories falling to a three-year low, even as gasoline stocks last week rose by 3.5-million barrels. ''Oil supply disruptions due to Hurricane Ida contributed to this decline as refineries’ ramp-up led to a build-up in gasoline stockpiles,'' analysts at ANZ Bank said.

Meanwhile, the Bureau of Safety and Environmental Enforcement announced that nearly 294,214b/d output, 16.18% of normal volumes, remains shut-in as of 22nd September. However, some oil facilities in the Gulf of Mexico are resuming production.

Risk appetite improves over Evergrande

Meanwhile, energy markets continue to firm alongside broad risk appetite.  The sudden drop in global stocks on Monday, with the benchmark S&P 500 index suffering its worst day of trading since May, has been reversed.

The move lower on global stocks was widely attributed to the deepening liquidity crisis at China Evergrande Group, the country’s second-largest property developer, and the world’s most indebted. However, the contagion sentiment risks have abated owing to encouraging announcements from a company spokesperson earlier in the week that said the company was trying to meet its debt liabilities within a 30-day grace period. Evergrande was due to pay $83.5 million in interest on a $2 billion offshore bond on Thursday and also has a $47.5 million dollar-bond interest payment next week.