Oil Steadies From 3-Day Selloff After API Inventory Report

SECAUCUS, NJ (DTN) – Oil futures steadied Wednesday (10/29) – following a three-day selloff – after the American Petroleum Institute reporting a second consecutive weekly drawdown in U.S.  inventories late Monday (10/28).

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. ET today. Fed’s Chair Jerome Powel is also scheduled to give a speech on the central bank’s decision at 2:30 p.m. ET.

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.

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 October 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 October 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 October 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 October 24 week, due at 10:30 am ET.