Breaking News: U.S. Crude Oil Futures Get Boost After API Reports Larger-Than-Expected Decline in Stocks
In a surprising turn of events, U.S. crude oil futures saw a slight uptick in post-settlement trading on Tuesday after the American Petroleum Institute (API) revealed a significant drop in weekly domestic crude stocks. The U.S. benchmark traded at $75.89 a barrel following the report, bouncing back from a 2.4% dip earlier in the day.
According to the API data, crude inventories decreased by approximately 3.4 million barrels for the week ending Aug. 23, a stark contrast to the 347,000 barrel build reported the previous week. Economists had predicted a more modest decline of around 3 million barrels. Additionally, gasoline stockpiles fell by 1.9 million barrels, while distillate inventories, which include diesel and heating oil, dropped by 1.4 million barrels.
Investors are now eagerly awaiting the official Energy Information Administration (EIA) report, scheduled for release on Wednesday at 10:30 a.m. EST (1530 GMT).
Analysis: This unexpected drop in crude oil inventories could have a significant impact on oil prices and the energy sector as a whole. With supply tightening and demand remaining strong, we may see further price increases in the near future. This is important for investors to monitor, as it could present lucrative opportunities for those involved in the oil market. Keep a close eye on developments and consider adjusting your investment strategy accordingly.