Title: U.S. Crude Oil Futures Surge on Larger-Than-Expected Inventory Decline - Expert Analysis
Investing.com -- In a major turn of events, U.S. crude oil futures skyrocketed in settlement trading on Tuesday following the American Petroleum Institute's stunning report of a much larger-than-expected decline in weekly domestic crude stocks. The U.S. benchmark hit $78.65 a barrel after settling up 2.1% at $78.35 a barrel.
The API reported a decrease of approximately 5.2 million barrels for the week ending Aug. 9, a significant contrast to the previous week's build of 180,000 barrels. Economists had anticipated a decline of about 2 million barrels. Gasoline stockpiles also saw a notable drop of 3.7 million barrels, while distillate inventories, including diesel and heating oil, rose by 612,000 barrels.
Investors are eagerly awaiting the official EIA report scheduled for Wednesday at 10:30 a.m. EST (1530 GMT). Meanwhile, oil prices experienced a slight dip on Tuesday, ending a five-day winning streak due to diminishing concerns about the Middle East conflict expanding and impacting global crude supplies, with Iran suggesting a potential shift in plans regarding Israel in the event of successful Gaza-ceasefire talks.
Analysis:
The unexpected decline in U.S. crude oil inventories has led to a surge in oil prices, indicating a shift in market dynamics. This news could potentially impact various sectors, including energy, transportation, and consumer goods, as businesses adjust to changing costs. Investors should monitor the upcoming EIA report for further insights into the oil market's trajectory and consider adjusting their investment strategies accordingly.