Oil futures settled higher on Wednesday after the Energy Information Administration reported a weekly decline of 400,000 barrels in U.S. crude inventories, defying some expectations for a weekly climb. The crude market is coming out of an “overbought situation” and may see prices consolidate, before grinding higher, said Tariq Zahir, managing member at Tyche Capital Advisors. He also said he wouldn’t be surprised to see the Biden administration try and pressure the Organization of the Petroleum Exporting Countries to produce more oil or see renewed talk of a release of oil from the Strategic Petroleum Reserve, amid efforts to “try and halt the recent upward movement in crude prices.” On its expiration day, West Texas Intermediate crude for November delivery rose 91 cents, or 1.1%, to end at $83.87 a barrel on the New York Mercantile Exchange, the highest finish for a front-month contract since Oct. 13, 2014, according to FactSet data. December WTI crude , now the front-month contract, added 98 cents, or 1.2%, to settle at $83.42.
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