Oil News: API Confirms Rising U.S. Crude Stocks Amidst Market Anticipation for EIA Findings

Wednesday, 23 October 2024, 03:34

Oil news highlights the API's confirmation of rising U.S. crude stocks as traders wait for the upcoming EIA report. Crude oil futures experience fluctuations with a bearish bias influenced by inventory data and geopolitical tensions.
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Oil News: API Confirms Rising U.S. Crude Stocks Amidst Market Anticipation for EIA Findings

API Reports Rising U.S. Crude Stocks

The American Petroleum Institute (API) recently revealed a significant rise in U.S. crude inventories, with stocks increasing by 1.64 million barrels last week. This rise is well above the 300,000-barrel increase that analysts had predicted, leading to downward pressure on prices.

Market Reactions and EIA Report Expectations

Following this news, light crude oil futures dipped slightly, currently trading at $70.73, down $1.01 or -1.41%. Investor focus is now shifting to the upcoming Energy Information Administration (EIA) report, predicted to show an additional 900,000-barrel increase in U.S. oil supplies.

Geopolitical Tensions Affecting Oil Prices

Despite bearish inventory data, ongoing tensions in the Middle East provide a counterbalance, supporting oil prices. Traders are keenly observing geopolitical developments, particularly the conflict involving Israel and Iran, which may influence future market dynamics. With the potential for prolonged unrest, analysts suggest that the market remains vulnerable to volatility.

Market Outlook and Realistic Scenarios

The near-term outlook suggests a bearish sentiment. If the EIA confirms a larger-than-expected inventory build, prices may further decline. However, a break above the retracement level of $71.63 could pave the way for a rally towards the 200-day moving average. Traders should brace for significant market fluctuations driven by data releases and geopolitical news.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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