U.S. Crude Oil Futures Decline

U.S. crude oil futures dropped in post-settlement trading on Tuesday after the American Petroleum Institute reported a larger-than-expected increase in domestic crude stocks, amid weather-related disruptions to the energy sector.

Crude Oil WTI Futures, the benchmark for the U.S., was recently priced at $73.91 a barrel following a settlement down 4.6% at $73.57.

Oil prices faced significant pressure as concerns eased about wider Middle East conflicts, with reports indicating Hezbollah is pursuing a ceasefire with Israel.

Domestic crude inventories rose by approximately 10.9 million barrels for the week ending October 4, contrary to the previous week’s draw of 1.46 million barrels. Economists had anticipated a build of about 1.9 million barrels.

Meanwhile, gasoline stockpiles decreased by about 557,000 barrels, and distillate inventories, which include diesel and heating oil, fell by 2.59 million barrels.

The official government inventory report is set to be released Wednesday at 10:30 a.m. EST (1530 GMT).