Top Investment Manager Reveals: U.S. Crude Oil Futures Slip Despite API Report Showing Surprising Decline in Stocks
In a surprising turn of events, U.S. crude oil futures slipped in post-settlement trading on Tuesday, despite the American Petroleum Institute reporting a larger-than-expected decline in domestic weekly crude stocks. This is a clear indication that summer demand is on the rise, yet the market seems to be reacting differently.
The U.S. benchmark traded at $80.94 a barrel following the report, after settling 1.1% lower at $81.41 a barrel. The API reported a decline of about 1.9 million barrels for the week ended July 5th, compared to the previous week's draw of 9.2 million barrels. Economists were only expecting a draw of 250,000 barrels, making this report even more surprising.
Despite disruptions in refineries in Texas due to Hurricane Beryl, which made landfall on Monday, the drawdown in crude stocks was significant. Gasoline stockpiles decreased by 3 million barrels, while distillate inventories increased by 2.3 million barrels, according to the API data.
The market is eagerly awaiting the official report due on Wednesday at 10:30 a.m. EST (1530 GMT), which could further impact oil prices and trading decisions.
In conclusion, this unexpected turn of events in the oil market shows the complexity and volatility of commodity trading. As an investor, it's important to stay informed and analyze all available data before making any investment decisions. This report serves as a reminder of the importance of diversification and risk management in your investment portfolio. Stay tuned for more updates and analysis on the ever-changing financial markets.