Oil: Private survey of inventory shows a headline crude oil than expected

Oil prices are in turmoil following the results of a private inventory survey. The American Petroleum Institute (API) reports indicate higher than expected increases in crude oil inventories. Market expectations were for a rise of +0.42 million barrels in crude, +0.13 million barrels in distillates, and +0.24 million barrels in gasoline. The official report from the EIA is due Wednesday morning (US time). The EIA's official data is seen as more accurate and comprehensive, as it is based on government data. In contrast, the API survey provides a short-term view but lacks detailed precision. Geopolitical risks, especially concerning Iran, continue to support oil prices. Imported supply from Venezuela may cap the upside for oil, leading to continued volatility in pricing. Recently, oil reached seven-week highs, and with mounting tensions in the Middle East, particularly regarding Iran, there remains potential for further increases if escalations occur. Hence, traders should remain cautious in observing current oil price movements.