US Oil Futures Rise as Crude Stocks Drop More Than Anticipated

U.S. crude oil futures experienced an uptick in post-settlement trading on Tuesday after the American Petroleum Institute (API) reported a larger-than-expected decline in domestic crude inventories last week. This news has sparked optimism regarding the anticipated seasonal increase in summer demand.

The U.S. benchmark saw trades at $78.25 a barrel following the report, after closing up 0.2% at $77.90 a barrel. According to the API, crude stocks fell by approximately 2.4 million barrels for the week ending June 7, contrasting with a build of 4 million barrels in the previous week. Economists had predicted a reduction of 1.8 million barrels.

The inventory figures enhanced optimism that traditional energy demand for the upcoming summer months is gaining momentum after a sluggish start. Additionally, the API reported that gasoline inventories dropped by 2.5 million barrels, while distillate stocks—which include diesel—rose by 972,000 barrels.

A crucial report is scheduled for release on Wednesday at 10:30 a.m. EST.

Oil prices finished higher on Tuesday, supported by a favorable demand outlook, although concerns regarding a possible hawkish stance from the Federal Reserve on Wednesday moderated the gains.