DTN Oil Update
Oil Steadies From 3-Day Selloff After API Inventory Report
SECAUCUS, N.J. (DTN) -- Oil futures steadied Wednesday, Oct. 29 -- following a three-day selloff -- after the American Petroleum Institute reported a second consecutive weekly drawdown in U.S. inventories late Monday, Oct. 27.
The oil futures market remained in a wait-and-see mode as the Federal Open Market Committee is expected to announce a half-percentage point cut in key U.S. interest rates at 2 p.m. EDT today. Fed's Chair Jerome Powell is also scheduled to give a speech on the central bank's decision at 2:30 p.m. EDT.
The NYMEX WTI contract for December delivery was down $0.01 at $60.14 bbl. ICE Brent for December delivery slid $0.03 to $64.37 bbl.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
Front-month ULSD futures slumped $0.0032 to $2.3841 gallon.
In contrast, the November RBOB gasoline futures contract inched up $0.0146 to $1.9398 gallon.
The U.S. Dollar Index rose 0.202 points to 98.655 against a basket of foreign currencies.
U.S. crude oil inventories declined for a second straight week during the week ended Oct. 25, with gasoline and distillate fuel stocks posting sharper draws, the American Petroleum Institute (API) reported on Tuesday.
U.S. commercial crude oil supply fell by 4 million bbl during the week ended Oct. 24, following a 2.98 million bbl decrease the prior week.
This was despite inventories at Cushing, Oklahoma, the delivery point for NYMEX West Texas Intermediate futures, rising by 1.7 million bbl, following a 1.15 million bbl decline the previous week, according to API.
Gasoline inventories dropped by 6.3 million bbl in the week ending Oct. 25, compared with a 1.25 million bbl draw the previous week.
Distillate fuel stocks also fell, declining by 4.4 million bbl after a 1.82 million bbl decrease the prior week.
The market also awaits the U.S. Energy Information Administration's inventory report for the Oct. 24 week, due at 10:30 a.m. EDT.