After rising for two straight sessions, crude futures were lower on a jump in U.S. oil stocks and a stronger dollar, though continued worries over a wider conflict in the Mideast provided a floor of support.

The Nymex December West Texas Intermediate contract was down by 85cts to $70.90/bbl on Wednesday and the January WTI contract was off by the same amount to $70.50/bbl.

The December ICE Brent futures was down 85cts to about $75.20/bbl and January Brent was 85cts lower at $74.80/bbl.

The more-active Nymex December RBOB contract was 4cts lower at $1.997/gal and the front-month November RBOB contract was down by 4.1cts to $2.0305/gal. The Nymex December ULSD contract was about 1.95cts lower at $2.2175/gal and November ULSD was off by 1.95cts to $2.2275/gal.

Petroleum futures came under pressure after the Energy Information Administration reported U.S. commercial crude stocks rose by 5.5 million bbl in the week ended Friday. EIA also estimated that gasoline stocks rose last week by about 900,000 b/d while distillate stocks dropped by 1.1 million b/d.

Broader economic concerns may have led to some selling in oil commodities after the government reported U.S. existing home sales in September fell by 3.5% year to year. Home sales are on track for the lowest reading since 1995.

The U.S. dollar index jumped by 0.4%. A stronger dollar makes petroleum futures more expensive for investors holding non-U.S. currencies.

Crude prices sold off last week after major news outlets reported Israel wouldn't strike Iran's oil facilities in retaliation for Tehran's Oct. 1 missile strike against Israel.

Still, concerns that a wider Mideast war could affect oil supply limited deeper declines in crude futures, analysts said.

Goldman Sachs said in a Tuesday note that while supply could be constrained by the conflict, high spare capacity among OPEC and its allies is likely to provide an upside for supply over the mid-term.


This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal. 


 
   -- Reporting by Frank Tang, ftang@opisnet.com; Editing by Jeff Barber,   jbarber@opisnet.com

(END) Dow Jones Newswires

10-23-24 1254ET