U.S. crude oil futures saw an increase in post-settlement trading on Tuesday, defying expectations after the American Petroleum Institute reported a smaller-than-expected decline in weekly domestic crude stocks. The ongoing geopolitical tensions in the Middle East have continued to provide support for oil prices.
The U.S. benchmark was recently trading at $70.75 a barrel, following a 2.4% increase to $69.83 a barrel. The fears of potential supply disruptions in the Middle East escalated after Iran launched a missile attack against Israel, prompting retaliation threats.
The API reported a decrease of about 1.46 million barrels for the week ending Sept. 27, contrasting with the 4.3 million barrel drawdown in the previous week. Economists had anticipated a decline of around 2.1 million barrels.
While gasoline stockpiles increased by approximately 909,000 barrels, distillate inventories, including diesel and heating oil, dropped by 2.67 million barrels. The official Energy Information Administration report is scheduled for release on Wednesday at 10:30 a.m. EST (1530 GMT).
Overall, the rise in crude oil futures amidst lower-than-expected stockpile declines and escalating Middle East tensions highlights the complex dynamics influencing oil prices. Investors and traders should closely monitor developments in the region and the upcoming EIA report to make informed decisions about their investment strategies.