WTI Oil closed off Thursday at $82.82, close to a fresh five-month high.
Oil traders remain bullish despite recent US stockpile build-ups.
The US Dollar Index trades in the green, and could post a fresh monthly high.
Oil prices have been heading higher in recent weeks, with several elements painting a rather sketchy picture of the US status in the global Oil market. Any bearish moves in recent weeks were often attributed to the fact that the US was flooding the markets with Oil in order to temper prices. However, Bloomberg reports that the US Energy Department is very active in buying Oil at current prices to rebuild a 40-year low in US strategic reserves, which means that the US is dumping Oil to get prices lower while it is buying that same Oil back at a higher price.
The US Dollar, meanwhile, is roaring again with the US Dollar bulls performing a four-day winning streak ahead of the US Personal Consumption Expenditures (PCE) Price Index numbers. Markets are on edge as recent inflation measures have pointed to an uptick in price pressures. If the PCE points to accelerating inflation, this could result in markets starting to cut back the number of interest-rate cuts expected for this year, pushing back further down the initial rate cut from the US Federal Reserve.
Crude Oil (WTI) closed off at $82.82 per barrel, and Brent Oil closed off at $86.82 per barrel on Thursday evening.
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