U.S. crude-oil futures retreated on Tuesday, taking a cue from the stock market’s drop, then trimmed their loss in electronic trading after weekly supply data.
Crude oil for September delivery fell $1.26, or 1.2%, to settle at $105.30 a barrel on the New York Mercantile Exchange. It recovered a bit to trade at $105.70 after the supply data.
“We’re getting some downward pull from the selloff in the equity markets,” said Jim Ritterbusch, president of oil advisory firm Ritterbusch & Associates. U.S. stocks fell sharply on Tuesday after two Federal Reserve officials spoke about the possibility the Fed could reduce its bond purchases in September or October.
Oil trimmed its loss in electronic trading after weekly supply data from the American Petroleum Institute showed a larger-than-expected drop in crude stocks. The API report indicated a drop of 3.7 million barrels in the week ended Aug. 2, according to reports, while analysts polled by Platts forecast a decline of 2 million barrels.
Distillate stocks increased by 1.5 million barrels, while gasoline stocks decreased by 971,000 barrels. Analysts had expected a drop by 1 million barrels in each case.
A more closely watched weekly supply report is expected on Wednesday from the Energy Information Administration.
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