U.S. Crude Oil Futures Post-Settlement Update

U.S. crude oil futures edged lower in post-settlement trading on Tuesday after the American Petroleum Institute (API) released a mixed inventory report amid expectations of a smaller build in domestic crude stocks, while gasoline stocks saw an unexpected rise.

Crude Oil WTI Futures, the benchmark in the U.S., traded at $73.03 a barrel after settling up 0.36% at $73.20 a barrel.

Inventory Changes

• U.S. crude inventories increased by about 180,000 barrels for the week ending August 2, compared to a draw of 4.5 million barrels reported by the API for the prior week. Economists had anticipated an increase of 850,000 barrels.
• Gasoline stockpiles saw a rise of 3.31 million barrels, while distillate inventories (including diesel and heating oil) increased by 1.22 million barrels.

Market Context

The build in product inventories occurs as peak summer demand concludes and refiners typically decrease production for maintenance in the fall.

The official government inventory report is set to be released on Wednesday at 10:30 a.m. EST (1530 GMT).

Oil prices experienced a higher settlement on Tuesday due to concerns about potential supply disruptions, as markets remain cautious of possible retaliation from Iran against Israel following the recent assassination of a Hamas leader in Tehran.