Oil rebounds despite bearish inventory data

Oil: API Reports Large Crude Inventory Build – ING

Oil prices recovered some of their recent losses on Thursday morning as the President of the United States announced that India has pledged to halt purchases of Russian barrels soon, according to ING commodity experts Ewa Manthey and Warren Patterson.

Distillate Inventory Decline Sends Mixed Signals

India’s foreign ministry stated that it will diversify its energy sourcing while ensuring stable prices and secure supply. However, a bearish report from the American Petroleum Institute (API) limited any major upside for oil prices.

Overnight data from the API showed that crude oil inventories increased for the third consecutive week, rising by 7.36 million barrels—contrary to market expectations of a 136,000-barrel draw. In refined products, gasoline inventories rose by 3 million barrels, while distillate stocks declined by 4.8 million barrels.

The decline in distillate inventories offered mixed signals regarding domestic energy consumption. The more widely followed EIA weekly inventory report is scheduled for release later today.