DTN Oil Update
Oil Futures Jump 2% After Weekly Draw in US Crude Stocks
SECAUCUS, N.J. (DTN) -- Oil futures jumped 2% on Wednesday, Oct. 22, morning after data from the American Petroleum Institute (API) showed a weekly draw in crude and fuel product stocks for the week ended Oct. 17. This marked the first draw in three weeks.
Reports that the United States had pushed India to wind down purchases of Russian oil during a phone call between U.S. President Donald Trump and Indian Prime Minister Narendra Modi also set the bullish tone in the oil futures market.
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Additionally, the U.S. Department of Energy's announcement on Tuesday, Oct. 21, that it would buy approximately one million barrels of crude oil to replenish the Strategic Petroleum Reserve contributed to the market sentiment.
NYMEX WTI futures for November delivery rose $1.30, or 2.2%, to $58.55 bbl. ICE Brent for December delivery climbed $1.29, or 2.1%, to $62.61 bbl. WTI and Brent are also up more than 2% week-to-date after straight losses in three prior weeks.
Downstream, November RBOB gasoline futures climbed $0.0306 to $1.8559 gallon, while the front-month ULSD futures contract rose $0.0358 to $.2416 gallon.
The U.S. Dollar Index edged higher by 0.154 points to 98.865 against a basket of foreign currencies.
U.S. commercial crude oil supply decreased by 2.98 million bbl last week, following a 3.524 million bbl build the prior week, API data on Tuesday showed.
Gasoline stockpiles, meanwhile, fell by 236,000 bbl in the week ending Oct. 18, compared with a 270,000 bbl draw the previous week. Distillate fuel stocks also declined, sliding by 974,000 bbl after a 4.53 million bbl decrease the prior week.
Market participants will be focused on U.S. Energy Information Administration's inventory data to be released at 10:30 a.m. EDT today.
