Inventories of crude oil for the week ended October 23 rose a less-than-expected 778,000 barrels versus expectations for a 1.9 million barrel rise, the third weekly gain. Meanwhile, gasoline inventories, which were expected to drop by one million, gained for the first time in three weeks with a rise of 1.6 million barrels. The figure had recently seen back-to-back declines of more than two million, while a recent report from credit card company MasterCard cited the strongest demand for gas since late August, even as prices increased. Elsewhere, distillate fuels saw a third week of declines, dropping more than two million barrels for the largest fall since early April.
Ultimately, the release is not favorable for crude, as high prices may limit demand growth while also leading more OPEC and other producers to increase production. At the same time, the recent strength found in the greenback as equity markets fall may bode poorly for the dollar-valued commodity. Oil is trading lower by more than one percent today, while a move below the recent breakout near the $77-$78 range could be a bearish signal for further downside.
Crude 10-day Intraday Chart
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