Gains have been trimmed in stocks today due to renewed inflation concerns, but oil is recovering following the sharp fall in today’s stockpile data.

Stocks drop back from recent highs

“After the gains of the last few sessions we have seen a bout of profit-taking creep back in, although it is relatively orderly so far. The UK’s CPI reading and ongoing concerns about Europe’s seemingly-inevitable winter energy crunch have been behind the risk-off move, with investors tempering their optimism about the next few months as they fret about recessions in both the UK and the rest of Europe.”

Oil rallies after huge weekly stockpile drawdown

“Weekly oil inventories dropped sharply this afternoon, providing a lift for oil prices that had been on the back foot so far this week. Expectations of an Iran deal and the consequent return of Iranian supply had seen even short-term bounces in crude being viewed as selling opportunities, but this sign of reviving demand in the US on the back of lower oil & gasoline prices has helped Brent and WTI to steady themselves for the time being.”

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