DTN Oil Update
Oil Prices Mixed as US Crude Stocks Rise, Gasoline Drops
SECAUCUS, N.J. (DTN) -- Crude and refined product futures were little changed Wednesday after a two-day plunge, as a surprise weekly build in U.S. crude stocks offset positive impact from new security threats in the Middle East.
U.S. commercial crude stocks rose by 2.5 million bbl to 407 million during the week ended July 31, the Energy Information Administration (EIA) reported Wednesday.
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That defied market expectations for a draw of 1.5 million bbl and led to mixed outcomes for energy futures after the EIA also reported that gasoline inventories fell by 1.6 million bbl to 209.7 million, while distillate balances dropped by 3.5 million bbl to 107.2 million.
NYMEX WTI for September delivery settled down $0.55, or 0.7%, at $75.22 bbl. The U.S. crude benchmark lost about 2% and 6% back-to-back in the two prior sessions.
ICE Brent for October delivery closed up $0.09, or 0.1%, at $79.45 bbl. The global crude benchmark fell more than 12% combined in the first two sessions of the week.
Among refined products, NYMEX ULSD for September delivery rose $0.0257, or 0.7%, to finish at $3.7962 gallon. September RBOB retreated $0.0134, or 0.5%, to close at $2.8388 gallon.
The U.S. Dollar Index slipped by 0.219 points to 99.52 against a basket of currencies.
Fresh security risks across Red Sea trade routes triggered Wednesday's early bounce, highlighted by Houthi claims of a missile strike on a Saudi tanker off Yanbu and reports of a commercial vessel coming under fire near the Strait of Hormuz.
The incidents checked optimism surrounding draft de-escalation proposals circulated by Qatari mediators to reopen Hormuz, even as U.S. President Donald Trump expressed confidence a deal was near while threatening severe retaliation if negotiations falter.
Meanwhile, Tehran remains focused on establishing its own mandatory transit corridor through the Strait -- a maneuver Washington views as a ploy to collect tolls from commercial shipping.