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    WTI crude oil price rises to $64.15 after significant drawdown

    by VT Markets
    /
    Aug 27, 2025
    The price of WTI crude oil has reached $64.15, up by $0.90 or 1.42%. Today, the price hit a high of $64.23 and a low of $62.95, closing close to the high. Earlier, the price fell below its 200-hour moving average for the first time since August 21. However, it managed to settle above the 100-hour moving average, which stands at $63.74. An unexpected drop in oil supply of 2.4 million barrels, compared to the expected 1.863 million, helped boost prices. Gasoline inventories also saw a decline of 1.236 million barrels.

    Bullish Signal from Inventory Drawdown

    Today’s price movements, combined with the surprising inventory drawdown, send a bullish signal. The market is using up supply faster than expected, indicating strong demand. This environment supports the idea that prices could rise in the near future. Positive sentiment is further fueled by recent economic data and upcoming seasonal risks. The US Services PMI for August exceeded expectations at 54.1, and with Tropical Storm Leo forming in the Gulf of Mexico, we see potential for both strong demand and supply interruptions. Such factors often bring increased volatility and upward pressure on prices as we move into September. Looking back, we observed a pattern of significant summer inventory draws that led to price increases into autumn 2023. This historical trend suggests we might be on the verge of a similar seasonal trend, rather than just a one-off situation. The steady inventory draws, especially last week’s larger drop, indicate a tightening market that traders should pay attention to.

    Strategies for Potential Upside

    Given this context, we’re exploring strategies that could benefit from a potential price increase in the coming weeks. One option is to buy out-of-the-money call options, like the October $67.50 contracts. This approach allows us to take advantage of potential gains while managing risk. We will keep an eye on the 100-hour moving average at $63.74 as a key support level for our positions. Create your live VT Markets account and start trading now.

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