Oil prices have largely seen a recovery to start the week despite getting whipped around on Wednesday.

October WTI crude oil traded moderately lower on Wednesday, holding onto the $64 handle. Prices had surged this week before finding resistance at the 200-day moving average near $65 a barrel. 

The Energy Information Administration’s weekly petroleum report showed that commercial crude oil inventories fell 9.2 million barrels during the week ending Sept. 12. The draw brought stocks to the lowest level since June. Exports surged above 5 million barrels and were the highest since December 2023. 

Oil futures sold off on the news, largely due to the EIA reporting a large adjustment factor that skews the data slightly. 

Domestic diesel inventories have been rising. Weekly data showed that stocks rose by over 4 million barrels to the highest since late January. The increase came as production, imports, and exports were lower, while demand rose during the week. 

Diesel supplies have been recovering from 20-year seasonal lows earlier this summer and are now back in line with year-ago levels. 

The Federal Reserve will report its latest monetary policy later today. Market expectations expect the Fed to cut the benchmark interest rate by at least 25 basis points. That would bring the rate down to 4.00 to 4.25 percent. 

Commodity markets rallied on Tuesday in anticipation of the rate cut. Additionally, the U.S. dollar broke lower to begin the week.

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