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US oil futures higher despite smaller-than-expected API draw

Published 01/10/2024, 22:08
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Investing.com -- U.S. crude oil futures were higher in post-settlement trading Tuesday despite the American Petroleum Institute reporting a smaller-than-expected decline in weekly domestic crude stocks as rising Middle East geopolitical tensions continued to offer support.

Crude Oil WTI Futures, the U.S. benchmark, recently traded at $70.75 a barrel following the report after settling up 2.4% at $69.83 a barrel. Oil prices were supported by rising fears about supply disruptions in the Middle East after Iran launched a missile attack against Israel, with the latter vowing to retaliate.

U.S. crude inventories decreased by about 1.46 million barrels for the week ended Sept. 27, compared with a draw of 4.3M barrels reported by the API for the previous week. Economists were expecting a decline of about 2.1M barrels.

Gasoline stockpiles increased by about 909,000 barrels, while distillate inventories -- the class of fuels that includes diesel and heating oil -- declined by 2.67M barrels.

The official government inventory report is due Wednesday at 10:30 a.m. EST (1530 GMT).

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