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Oil Futures Settle Higher On Drop In Crude Inventories, Weak Dollar

Despite concerns about a global economic slowdown and the outlook for energy demand, crude oil prices rose sharply on Wednesday after data showed a dip in U.S. crude inventories in the week ended September 23rd. The dollar's sharp drop also contributed to the jump in oil prices.

The dollar shed ground against several currencies after initially surging higher. The dollar index, which hit a fresh two-decade high at 114.78, dropped to 112.59 this afternoon.

West Texas Intermediate Crude oil futures for November ended higher by $3.65 or almost 4.7% at $82.15 a barrel.

Brent crude futures climbed 3.5% to settle at $89.32 a barrel today.

Data released by U.S. Energy Information Administration (EIA) showed crude stocks dropped by 215,000 barrels last week.

Gasoline inventories were down 2.4 million barrels last week, while distillate stockpiles fell 2.9 million barrels.

Oil prices were also supported by production shut-ins in the Gulf of Mexico region due to Hurricane Ian. According to government data, about 190,000 barrels per day of oil production or 11% of the Gulf's total was shut in.

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