Oil edges higher as U.S. crude, fuel inventories fell much more than expected

[Data analyzing in commodities energy market: the charts and quotes on display. US WTI crude oil price analysis. Stunning price drop for the last 20 years.]
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Crude oil futures ended a three-session losing streak with support from larger than expected draws [https://seekingalpha.com/news/4510248-crude-inventory-falls-by-69m-barrels-for-week-ended-oct-24-eia] in U.S. crude and product stockpiles and optimism over trade talks between the U.S. and China.

Commercial crude oil inventories excluding the Strategic Petroleum Reserve fell by a much larger than expected 6.9 million barrels to 416 million barrels in the week ended October 24 and were ~6% below the five-year average for the time of year, according to the U.S. Energy Information Administration.

The big draw forced a reassessment [https://www.reuters.com/business/energy/oil-edges-up-us-crude-inventory-draw-2025-10-29/] of expectations that the oil market is headed for a large surplus, with OPEC+ raising production and U.S. output at record levels.

Gasoline stocks fell by a larger than forecast 5.9 million barrels to 210.7 million barrels and were 3% below the five-year average, and distillate fuel stocks dropped by 3.4 million barrels to 112.2 million barrels and were ~8% below the five-year average for the time of year. the EIA reported.

With the 6.9 million barrel crude draw largely the result of unsustainably lower imports, "we viewed the larger than expected cuts of 5.9 million barrels and 3.4 million barrels in gasoline and diesel stocks, respectively, as more price supportive than the crude supply decline," analysts at Ritterbusch said in a note.

Meanwhile, President Trump said he expects to sign a trade deal with China when he meets President Xi on Thursday, easing worries over a trade war that could hurt global economic growth and demand.

Trump and South Korean President Lee Jae Myung also finalized details of their trade deal at a summit in South Korea.

Front-month Nymex crude (CL1:COM [https://seekingalpha.com/symbol/CL1:COM]) for December delivery closed +0.5% to $60.48/bbl, front-month Brent December crude (CO1:COM [https://seekingalpha.com/symbol/CO1:COM]) settled +0.8% to $64.92/bbl, front-month RBOB gasoline (XB1:COM [https://seekingalpha.com/symbol/XB1:COM]) for November delivery ended +2.5% to $1.9737/gal, and front-month Nymex November diesel (HO1:COM [https://seekingalpha.com/symbol/HO1:COM]) finished +1.5% to $2.4243/gal.

Also, front-month Nymex natural gas (NG1:COM [https://seekingalpha.com/symbol/NG1:COM]) for November delivery closed +0.9% to $3.376/MMBtu.

ETFs: (USO [https://seekingalpha.com/symbol/USO]), (BNO [https://seekingalpha.com/symbol/BNO]), (UCO [https://seekingalpha.com/symbol/UCO]), (SCO [https://seekingalpha.com/symbol/SCO]), (USL [https://seekingalpha.com/symbol/USL]), (DBO [https://seekingalpha.com/symbol/DBO]), (DRIP [https://seekingalpha.com/symbol/DRIP]), (GUSH [https://seekingalpha.com/symbol/GUSH]), (USOI [https://seekingalpha.com/symbol/USOI]), (UNG [https://seekingalpha.com/symbol/UNG]), (BOIL [https://seekingalpha.com/symbol/BOIL]), (KOLD [https://seekingalpha.com/symbol/KOLD]), (UNL [https://seekingalpha.com/symbol/UNL]), (FCG [https://seekingalpha.com/symbol/FCG]), (XLE [https://seekingalpha.com/symbol/XLE])

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