DTN Oil Update
WTI Reaches $60 After US Oil Inventory Drops on Week
SECAUCUS, N.J. (DTN) -- Oil futures rose on Wednesday, Oct. 29, to snap a three-day selloff, driven by the Energy Information Administration's report of a tumble in U.S. stockpiles for the week ended Oct. 24.
The increase was also supported by the Federal Open Market Committee (FOMC)'s announcement of a 0.25 percentage point cut in U.S. interest rates -- the second consecutive reduction since September. The move, aimed at bolstering the weakening U.S. job market, leaves key U.S. lending rates in a range of 3.75% and 4%.
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The NYMEX WTI contract for December delivery settled up $0.33 at $60.48 bbl. ICE Brent for December delivery rose $0.36 to $64.76 bbl.
Front-month ULSD futures was higher by $0.0282 to $2.4154 gallon while November RBOB gasoline futures climbed $0.0374 to $1.9626 gallon.
The U.S. Dollar Index rose 0.212 points to 98.655 against a basket of foreign currencies.
U.S. commercial crude oil inventories fell for the second consecutive week during the week ended Oct. 24, with gasoline and distillate fuel oil stocks declining as well, the EIA reported.
Commercial crude stocks decreased by 6.8 million bbl to 416 million bbl in the reference period, following last week's 1 million bbl drop. Inventories are now 9.5 million bbl, or 2.2%, below levels last year.
The crude draw followed a build in stocks at the Cushing, Oklahoma delivery point for WTI futures. Cushing inventories rose by 1.4 million bbl to 22.6 million bbl in the week ended Oct. 24, its first build in five weeks.
Distillate fuel oil inventories declined by 3.4 million bbl to 112.2 million bbl last week, after reporting a 1.4 million bbl draw the prior week.
Total motor gasoline inventories fell by 6 million bbl to 210.7 million bbl week-over-week, on top of the prior week's 2.1 million bbl decline.