US Oil Futures Rise Despite Smaller-Than-Expected API Draw

U.S. crude oil futures saw an increase in post-settlement trading on Tuesday, even amid the American Petroleum Institute’s report indicating a smaller-than-expected decrease in domestic crude stocks. Rising geopolitical tensions in the Middle East continued to provide upward pressure on prices.

The U.S. benchmark recently traded at $70.75 a barrel, following a settlement rise of 2.4% to $69.83 per barrel. The oil market is being influenced by heightened concerns over potential supply disruptions in the Middle East, particularly after Iran launched a missile attack on Israel, which has promised to respond.

Crude oil inventories declined by approximately 1.46 million barrels for the week ending September 27. This was significantly less than the 4.3 million barrels drawn down the previous week, and below economists’ expectations of a reduction of around 2.1 million barrels.

In terms of refined products, gasoline stockpiles increased by about 909,000 barrels, while distillate inventories, which include diesel fuel, saw a decline of 2.67 million barrels.

A further report on oil stockpiles is expected to be released Wednesday at 10:30 a.m. EST.