Crude oil prices rebounded on Wednesday, rising 0.5% to $60.46/barrel, driven by a significant 6.9 million barrel drawdown in U.S. crude oil inventories for the week ended October 24th, as reported by the EIA. This substantial inventory reduction, alongside decreases in gasoline and distillate stockpiles, pushed U.S. crude inventories 6% below their five-year average, providing upward momentum. Optimism surrounding a potential U.S.-China trade deal further supported prices, though lingering demand concerns capped gains.
Crude oil prices rebounded on Wednesday, rising $0.31 or 0.5% to $60.46 a barrel, following three consecutive sessions of declines. This recovery was primarily driven by a significant 6.9 million barrel drawdown in U.S. crude oil inventories for the week ended October 24th, as reported by the Energy Information Administration (EIA). This substantial reduction exceeded the previous week's 1.0 million barrel dip. The EIA report further indicated a tightening supply picture, with U.S. crude oil inventories now 6% below their five-year average at 416.0 million barrels. Gasoline inventories also tumbled by 5.9 million barrels, sitting 3% below their five-year average, while distillate fuel inventories slumped by 3.4 million barrels, 8% below their five-year average. These widespread inventory drawdowns suggest robust demand or constrained supply. Optimism surrounding a potential U.S.-China trade deal, ahead of Thursday's meeting between President Trump and President Xi Jinping, provided additional support to oil prices. However, lingering demand concerns acted as a limiting factor, preventing a more substantial upside despite the strong inventory drawdowns and trade deal hopes.
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