WTI at $61, Eyes Weekly U.S. Stocks Data, Fed Outlook

SECAUCUS, NJ (DTN) – Crude prices were steady Monday (10/27) as market participants awaited weekly data on U.S. oil supplies and a Federal Reserve decision on interest rates.

The NYMEX WTI contract for December delivery settled down $0.19 at $61.31 bbl. ICE Brent for December delivery closed down $0.32 at $65.62.

Fuel prices bucked the downtrend in crude. November RBOB gasoline futures rose $0.0010 to $1.9237 gallon. Front-month ULSD futures climbed for a seventh straight day, advancing  $0.0381 to a one-month high $2.4412 gallon.

The U.S. Dollar Index edged down by 0.062 points to 98.685 against a basket of foreign currencies.

Market participants are focused on inventory data for the week ended October 24, due on Tuesday from the American Petroleum Institute. Separately, the U.S. Energy Information Administration will report on Wednesday oil inventories for last week.

WTI and Brent climbed more than 7% last week before turning soft in Monday’s session on concerns about global oversupply.

Last week’s rally in oil, the largest since June, followed the EIA’s report of across-the-board draws in stockpiles of crude oil and fuel during the week ended October l7. New U.S. sanctions on Russian oil added to the bullish tone.

The Federal Open Market Committee is scheduled to hold a two-day meeting this week that will result in a decision on interest rates on Wednesday. Market expectations are for a quarter percentage point cut, similar to what the Fed decided for September.