Oil Prices Stabilise Amid Inventory Drops

By Laila Kearney

Oil prices stabilized on Wednesday after industry data indicated a surprise drop in U.S. crude and gasoline inventories. This followed two sessions of losses due to easing hostilities in the Middle East.

• Brent crude futures gained 21 cents, or 0.3%, to $71.33 a barrel by 0002 GMT.
• U.S. West Texas Intermediate crude futures rose 22 cents, or 0.3%, to $67.43 per barrel.

Market sources cited figures from the American Petroleum Institute (API), stating that crude oil and fuel stocks fell last week. Crude stocks dipped by 573,000 barrels for the week ending Oct. 25. Gasoline inventories decreased by 282,000 barrels, and distillate stocks fell by 1.46 million barrels.

Nine analysts polled by Reuters had predicted a 2.2 million-barrel rise in crude inventories.

The official U.S. government data is scheduled for release later on Wednesday.

The API report was pivotal in reversing prices after a drop of more than 6% in the previous two sessions. Prices declined on Tuesday when an Axios reporter indicated that Israeli Prime Minister Benjamin Netanyahu would hold a critical meeting regarding a diplomatic solution about the ongoing conflict in Lebanon. On Monday, prices fell by 6% following Israel's military response to Iran that did not impact Tehran's oil infrastructure.