WTI crude held onto a sharp move higher after a large U.S. crude inventory draw added to supply concerns. The market was also focused on the continued decline in the Strategic Petroleum Reserve and on extremely low stockpiles at Cushing, Oklahoma, the delivery hub tied to WTI futures.
The reference to Cushing being near "tank bottoms" points to inventories sitting close to minimum operating levels. When stocks are that low, traders tend to pay closer attention because the amount of oil that is practically available can look tighter than the headline number suggests.
Oil also found support from geopolitical tension. Prices jumped after reports that the U.S. military intercepted Iranian ballistic missiles aimed at American forces in Jordan, a development that raised concern about possible disruption risks in an already sensitive energy market.
Taken together, the large crude draw, the ongoing SPR drain and stubbornly low Cushing inventories helped keep WTI elevated. With supply signals tightening and Middle East risk back in focus, traders appeared reluctant to fade the latest rally.
