DTN Oil Update
Oil Prices Dip on Risk Paring Ahead of US Inventory Data
SECAUCUS, N.J. (DTN) -- Oil futures fell Tuesday, Feb. 10, as market participants pared risk ahead of the American Petroleum Institute (API)'s release of weekly inventory data.
The dollar's rebound against a basket of currencies also weighed on crude and refined markets. Concerns over Iran's potential resistance to U.S. efforts to dismantle the OPEC member's nuclear program limited some of the downside.
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Inventory data for the week ended Feb. 6 is due from the API after 4.30 p.m. EST. During the prior week to Jan. 30, the API reported that U.S. crude stocks plummeted by 11.1 million bbl in the aftermath of Winter Storm Fern, which disrupted around 2.0 million bpd of production in the Permian basin. The plunge had stunned forecasters who had anticipated a crude stock build of 700,000 bbl instead.
The API also reported a decline of 4.8 million bbl for distillate balances during the week to Jan. 30, and a surge of 4.7 million bbl for gasoline inventories.
Its Tuesday report will be followed by official inventory data from the U.S. Energy Information Administration (EIA) on Wednesday, Feb. 11, that will allow traders to verify stockpiles for the week ended Feb. 6.
Oil prices have been supported in recent weeks by tensions related to Iran, which produces 3.2 million bpd. On Monday, Feb. 9, the Trump administration warned U.S.-registered commercial vessels to stay away from Iranian territorial waters when navigating the Strait of Hormuz, a waterway for a fifth of the world's petroleum cargoes.
In its February Short-Term Energy Outlook released Tuesday, the EIA projected NYMEX WTI crude to average $53 bbl this year and $49 bbl in 2027 versus last year's $65 bbl.
For Brent, the agency forecasts an average of $58 bbl in 2026 and $53 bbl in 2027, down sharply from the 2025 average of $69 bbl.
At Tuesday's settlement, WTI for March delivery closed down $0.40 at $63.96 bbl. April ICE Brent fell $0.14 to $68.90 bbl.
Downstream, March RBOB futures settled down $0.0263 to $ 1.9592 gallon. ULSD retreated by $0.0181 to close at $2.3988 gallon.
The U.S. Dollar Index rose by 0.092 points to 96.78 against a basket of currencies, limiting the downside in prices of commodities, including crude and oil products.