Oil futures surged to a new high for 2023 after inventory levels at the largest U.S. storage hub plummeted toward operational minimums. West Texas Intermediate surged by over 3% to reach a new height of $93.68 per barrel on Wednesday before advancing to $94.43 on Thursday.
Brent international futures were also on the rise, climbing over 2.5% to $96.55 per barrel. These developments come after reserves at the Cushing, Oklahoma crude storage facility slipped below 22 million barrels. This storage hub is considered a benchmark for U.S. oil prices.
This development further strengthens Goldman Sachs’ forecast that oil will rise to over $100 per barrel in the coming months. Citi, which has appeared more conservative in its estimates, has revised its own forecast and now believes that oil prices may hit this level temporarily.
