U.S. oil stockpiles unexpectedly drop, part of a volatile stretch
Everything from past wildfires in North Dakota to present conflict in the Middle East has made the world's greatest commodity unpredictable this past month.
According to Reuters, "Oil prices slipped slightly on Thursday as investors waited on developments in the Middle East, while falling crude inventories in the United States provided some support," in an early afternoon update provided by the esteemed news outlet that was echoed by many other reports.
Brent crude futures were down 34 cents to $73.88 a barrel at 1:46 p.m. EDT (1746 GMT), while U.S. West Texas Intermediate crude futures were at $70.07 a barrel, down 32 cents at that time.
Both benchmarks had previously settled down on the previous day, closing at their lowest levels since Oct. 2 for a second day in a row, after OPEC and the International Energy Agency cut demand forecasts for 2024 and 2025.
The oil market is not immune to fluctuation, and a number of analysts commented to outlets such as Reuters and the Wall Street Journal that this perceived volatility is actually a sign of market normalization in the long term. The former publication noted that "oil output in North Dakota, the third-largest producing state in the U.S., fell by around 500,000 barrels through October, after wildfires crossed into key producing counties earlier this month, a state regulator said."
U.S. crude inventories fell by 2.2 million barrels to 420.6 million barrels in the week ended Oct. 11, the Energy Information Administration said on Thursday, compared with analysts' expectations in a Reuters poll for a 1.8 million-barrel rise. Gasoline and distillate inventories also fell last week.