Oil prices soared higher on a bullish weekly oil inventory snapshot Wednesday coupled with positives coming from the externals.

The EIA reported an across the board draw in oil inventories with total US combined stocks of crude oil and refined products declining strongly on the week with the total now just 17.8 million bbls above the five-year average even as total US crude oil production hit another new record high. Oil prices are clearly back in an uptrend and trading at levels not seen since early February.

Needless to say, with total US stocks quickly approaching the five-year average level and with oil prices moving to higher levels it is easy to say that the OPEC production cutting accord is clearly working. On the external front, the US Central Bank raised short-term interest rates by 25 basis points (O.25%) as expected by the market.

On the day the US dollar was lower versus most currency pairs while equities were volatile but higher on the day. In summary, the externals were a positive for the oil complex today. On the financial front global equity markets were mixed around the world with the US markets modestly higher.

The EMI Index increased by 0.31 percent with the year to date gain now at 3.3 percent. Three of the ten bourses in the Index are still in positive territory for 2018. London is in the worst performing spot in the Index with Brazil in the top spot with an 11.3 percent gain for the year.

The higher value direction in global equity markets is a positive price driver for the oil complex. On the currency front, the US dollar Index was lower for the day with the Yen/USD and the Euro/USD higher. Overall the currency markets were a positive price driver for the oil complex.