Crude oil futures declined sharply on Wednesday, after official data from the Energy Information Administration showed crude stockpiles to have risen larger than expected last week.
The data showed domestic crude stockpiles rose by a larger than expected 6.5 million barrels in the week ended October 12. With last week’s increase, U.S. crude stockpiles have risen for four straight weeks now.
The EIA report further said that gasoline stockpiles fell by 2 million barrels last week, while distillate stockpiles declined by 800,000 barrels.
Crude oil futures for November delivery ended down $2.17, or 3%, at $69.75 a barrel, the lowest settlement in a month. On Tuesday, crude oil futures ended up $0.14, or 0.2%, at $71.92 a barrel.
On Tuesday, the American Petroleum Institute reported a decline of 2.1 million barrels in crude inventories.
The EIA data has showed that oil stockpiles have increased last week despite a drop in production due to hurricane Michael.
Tensions over Saudi Arabia have eased as U.S. Secretary of State Mike Pompeo said that the kingdom promised a “transparent investigation” into the disappearance and alleged killing of a prominent journalist.
However, traders appear to be betting on a likely drop in crude demand in the near term due to the impact of the ongoing U.S.-China trade dispute on the global economy.