US crude stocks surge by over 17 million barrels in two weeks
The Energy Information Administration reported a spike of 17.5 million barrels in US crude stocks in the last two weeks.
Total stocks are now up up to 439.4 million barrels.
Gasoline stocks fell 1.5 million barrels to 215.7 million barrels, while distillate stocks fell 1.4 million barrels to 106.6 million barrels.
Wall Street gains ground amid expectations the policy tigthtening cycle is over
US stock indices rose on Wednesday following data that confirmed the signals of slowing inflation, and the end of the current cycle of policy tightening.
Wall Street rallied on Tuesday after consumer prices data showed US inflation slowed down to 3.2% y/y in October from 3.7% in September.
US producer prices data also rose just 1.3%, slowing down from 2.2% in September.
Such data bolsters expectations of the end of the current cycle of policy tightening.
Dow Jones rose 0.3% as of 17:59 GMT, or 115 points to 34,942, while S&P 500 rose 0.2%, or 7 points to 4,502, as NASDAQ added 0.1%, or 8 points to 14,102.
Oil prices decline for second straight session
Global oil prices declined in American trade away from a one-week trough on active profit-taking, while initial data showed a buildup in US crude stocks.
Now traders await official US inventory data from the EIA after a delay.
Oil Prices
US crude fell 0.8% to $77.50 a barrel, while Brent shed 0.6% to $81.87 a barrel.
US crude lost 0.4% on Tuesday, while Brent shed 0.3%, the first loss in four days away from a one-week high.
US Stocks
Initial data from the American Petroleum Institute showed commercial crude stocks rose 1.3 million barrels in the week ending November 10, the third such increase in a row.
According to the data, total stocks are now up to 445 million barrels, already the highest since the week ending August 18.
Now traders await the official count from the Energy Information Administration later today.
US Demand
Earlier US data showed retail sales dipped, while producer prices slowed down, indicating the US economy is beginning to brake heavily.
Dollar holds above two-month trough ahead of US retail sales
The dollar gained ground in European trade against a basket of major rivals, holding above recent two-month lows after marking the worst daily loss in a year following weak US inflation data for October.
Such data hurt the chances of another 0.25% interest rate hike in December, with investors now awaiting crucial US producer prices and retail sales data later today.
The Index
The dollar index rose 0.25% to 104.31, with a session-low at 104.05, after closing down 1.5% on Tuesday, the third loss in a row, and the largest in 2023, marking a two-month trough at 103.99.
US Inflation Data
In the US, consumer prices rose 3.2% y/y in October, slowing down from 3.7% in the previous reading, and below estimates of 3.3%.
Core prices, excluding food and energy, rose 4% y/y, down from 4.1% in the previous reading.
US Rates
Following the data, the odds for a US interest rate hike in December plunged to 1%.
Traders also now expect the Federal Reserve to enact its first interest rate cut in May 2024.
Fresh Data
Now investors await important US retail sales and producer prices data for October later today to gauge the likely path ahead for US policies.
US producer prices are expected down 0.3% m/m in October, while core prices are expected down 0.1% m/m.
On a yearly basis, producer prices are expected up 1.9% in October, slowing down from 2.2% in the previous reading.