Oil Steadies as US Industry Report Points to Big Stockpile Gain

Oil prices steadied on Tuesday, October 29, 2024, after a surprise report from the American Petroleum Institute (API) indicated a significant increase in US crude oil inventories. The API reported a build of 4.7 million barrels, much higher than the expected decline of 1.85 million barrels. This unexpected inventory gain led to a slight pullback in oil prices, with Brent crude futures trading around $70.14 and WTI crude futures around $68.55 per barrel.



The API's report came ahead of the official inventory data release from the Energy Information Administration (EIA) on Wednesday, October 30, 2024. Market participants are now awaiting the EIA's data to confirm or refute the API's findings. The EIA is expected to report a drawdown of 1.7 million barrels against last week's decline of 1.425 million barrels.



The unexpected inventory gain has led to some uncertainty in the oil market, as traders assess the implications for the supply-demand balance. If the EIA's data confirms the API's report, it could indicate a more comfortable supply situation, potentially putting downward pressure on oil prices in the coming months. However, if the EIA's data shows a smaller-than-expected build or even a drawdown, it could suggest a tighter market, potentially supporting oil prices.

Market participants will continue to monitor inventory data and other market indicators to gauge the supply-demand balance and make informed trading decisions. The oil market remains sensitive to geopolitical risks, production cuts, and changes in demand, which can all impact prices in the short term.

In conclusion, the oil market steadied on Tuesday, October 29, 2024, following the API's report of a significant inventory gain. Traders are now awaiting the EIA's data to confirm or refute the API's findings and assess the implications for the supply-demand balance. The oil market remains sensitive to geopolitical risks, production cuts, and changes in demand, which can all impact prices in the short term.