DTN Oil Update
Oil Futures Rise Due to Crude, Products Stocks Fell Last Week
HOUSTON (DTN) -- Energy Information Administration (EIA) and American Petroleum Institute (API) data showing a drop in U.S. oil inventories for the second consecutive week, as of August 22, set a bullish tone in the crude oil futures market on Wednesday. Gasoline and distillate stocks also reported a draw during the reference week, according to both agencies.
This morning, the EIA reported commercial crude stocks declined by 2.4 million bbl to 418.3 million bbl last week, down by 6.9 million bbl compared to the same period last year. The draw follows a 6.0 million bbl decline in the week ending August 15. On Tuesday (8/26), the API reported U.S. commercial a 974,000 bbl draw on crude oil inventories in the same period.
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Motor gasoline inventories decreased by 1.2 million bbl to 222.3 million bbl, up by 3.9 million bbl compared to the corresponding week in 2024. Below a 2.06 million bbl decrease was reported by API on the previous trading day.
Distillate fuel oil inventories fell by 1.8 million bbl to 114.2 million bbl, down by 8.8 million bbl compared to the same time in the prior year, the EIA data showed. According to API, distillate fuel stocks decreased by 1.488 million bbl for the week.
Separately, a 50% tariff imposed by the Trump administration on imported goods from India -- in response to the country's Russian crude oil purchases -- came into effect today.
Concerns about the negative effect of the U.S.-led trade war with some of its trading partners are expected to continue putting downward pressure on the oil futures market.
The NYMEX WTI futures contract for October delivery rose by $0.56 to trade at $63.81 bbl while Ice Brent for October delivery gained $0.52 to $67.74 bbl.
September RBOB gasoline futures increased $0.0193 to $2.1416 gallon, and the front-month ULSD contract rose by $0.0022 to $2.2827 gallon.
In contrast, the U.S. Dollar Index dropped by 0.022 points to 98.100
