Oil futures off lows after API data show big draw in US crude stocks

Investing.com -- U.S. crude oil futures were given a boost-settlement trading Tuesday after the American Petroleum Institute reported a much larger-than-expected decline in weekly domestic crude stocks.

Crude Oil WTI Futures , the U.S. benchmark, traded at $78.65 a barrel following the report after settling up 2.1% at $78.35 a barrel.

U.S. crude inventories decreased by about 5.2 million barrels for the week ended Aug. 9, compared with a build of 180,000 barrels reported by the API for the previous week. Economists were expecting a decline of about 2 million barrels.

Gasoline stockpiles fell by 3.7M barrels, while distillate inventories -- the class of fuels that includes diesel and heating oil -- increased by 612,000 barrels.

The official government inventory report is due Wednesday at 10:30 a.m. EST (1530 GMT).

Oil prices settle lower Tuesday, snapping a five-day winning streak on waning fears of the conflict in the Middle East could expand and threaten global crude supplies as a Iran signaled that it could back off plans to strike Israel should Gaza-ceasefire talks succeed.

Source: Investing.com