Investing.com — U.S. crude oil futures were lower in post-settlement trading Tuesday after the American Petroleum Institute reported a much larger-than-expected increase in weekly domestic crude stocks amid weather-related disruptions to U.S. energy infrastructure.
, the U.S. benchmark, recently traded at $73.91 a barrel following the report after settling down 4.6% at $73.57 a barrel.
Oil prices were heavily pressured by easing concerns somewhat about wider Middle East conflict amid reports that Hezbollah is seeking a ceasefire with Israel.
increased by about 10.9 million barrels for the week ended Oct. 4, compared with a draw of 1.46M barrels reported by the API for the previous week. Economists were expecting a build of about 1.9M barrels.
Gasoline stockpiles fell by about 557,000 barrels, while distillate inventories — the class of fuels that includes diesel and heating oil — declined by 2.59M barrels.
The report is due Wednesday at 10:30 a.m. EST (1530 GMT).
Analysis:
The recent increase in weekly domestic crude stocks reported by the American Petroleum Institute has led to a drop in U.S. crude oil futures. This unexpected rise in stocks has put pressure on oil prices, which were already facing concerns about wider Middle East conflict. Gasoline stockpiles fell, while distillate inventories declined. Investors should keep a close eye on the upcoming API report for further insights into the oil market. Understanding these developments can help individuals make informed decisions about their investments and financial strategies.