Surprise Decline in U.S. Crude Oil Stocks Boost Market Sentiment
U.S. crude oil futures saw a rebound in post-settlement trading on Tuesday after the American Petroleum Institute reported a unexpected drop in weekly domestic crude stocks.
The U.S. benchmark surged to $66.31 a barrel following the report, recovering from a 4.3% decline to $65.75 a barrel earlier.
The API reported a decrease of approximately 2.8 million barrels for the week ended September 6, in contrast to the 7.4 million barrel draw in the previous week. Analysts had anticipated a rise of around 0.7 million barrels.
Gasoline inventories also saw a decrease of 513,000 barrels, while distillate stockpiles, which include diesel and heating oil, increased by 191,000 barrels.
The official report from the Energy Information Administration is scheduled for release on Wednesday at 10:30 a.m. EST (1530 GMT).
“We are projecting U.S. crude inventories to rise by 0.3 million barrels for the week ending September 6,” stated Macquarie in a recent analysis.
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**Analysis:**
The article discusses the unexpected decline in U.S. crude oil stocks reported by the American Petroleum Institute, leading to a positive market sentiment. This news caused a rebound in U.S. crude oil futures, with the benchmark price increasing to $66.31 a barrel. The report highlighted a decrease of 2.8 million barrels in crude oil stocks for the week ending September 6, contrary to analyst expectations of a rise. Gasoline inventories also fell, while distillate stockpiles, including diesel and heating oil, saw an increase. The Energy Information Administration is set to release its official report on Wednesday, which will provide further insights into the state of the oil market.