Oil Futures Decline After API Data Reveals Significant Rise in US Crude Stocks

U.S. crude oil futures experienced a decline in post-settlement trading on Tuesday following a report from the American Petroleum Institute, which indicated a significantly larger-than-expected increase in domestic crude stocks. This surge coincided with weather-related disruptions impacting the U.S. energy infrastructure.

The U.S. benchmark for crude oil, known as WTI Futures, was recently priced at $73.91 per barrel after settling down 4.6% at $73.57 per barrel.

Oil prices faced considerable pressure as concerns regarding a broader conflict in the Middle East eased slightly, following reports that Hezbollah is pursuing a ceasefire with Israel.

In terms of inventory, U.S. crude stocks rose by approximately 10.9 million barrels for the week ending October 4, a stark contrast to the previous week’s decline of 1.46 million barrels reported by the API. Economists had anticipated an increase of around 1.9 million barrels.

Gasoline stockpiles saw a reduction of about 557,000 barrels, while distillate inventories, which include diesel and heating oil, fell by 2.59 million barrels.

An official government inventory report is scheduled for release on Wednesday at 10:30 a.m. EST (1530 GMT).