Oil Prices Surge: Inventory Drop Fuels Rally
- crude oil inventories experienced a notable decrease of 5.8 million barrels in the week ending June 20, according to the Energy Data Governance (EIA).
- The American Petroleum Institute (API) had previously estimated a 4.277 million barrel decrease.
- In New York trading at 9:44 a.m., crude was up 0.64% at $67.57 a barrel, although still down about $8 for the week.West Texas Intermediate (WTI) also saw...
Crude oil prices surged as a notable 5.8 million barrel drop in U.S. crude oil inventories triggered a market rally. Gasoline inventories also saw a decrease, further tightening fuel supplies and impacting market sentiment. Distillate stocks are now 20% below the five-year average, indicating a supply crunch. The EIA data confirms this downturn,with commercial crude oil stockpiles now about 11% below normal. West Texas Intermediate (WTI) and crude oil saw gains. News Directory 3 delivers the latest on these developing trends. Monitor upcoming reports to understand how these supply shifts will affect crude oil and gasoline prices. Discover what’s next …
U.S. Crude Oil Inventories Tumble, Fuel Supplies Tighten
U.S. crude oil inventories experienced a notable decrease of 5.8 million barrels in the week ending June 20, according to the Energy Data Governance (EIA). This drawdown has reduced commercial crude oil stockpiles to 415.1 million barrels,approximately 11% below the typical level for this time of year.
The American Petroleum Institute (API) had previously estimated a 4.277 million barrel decrease. The EIA data confirmed a substantial drop in crude oil inventories, impacting market sentiment.
In New York trading at 9:44 a.m., crude was up 0.64% at $67.57 a barrel, although still down about $8 for the week.West Texas Intermediate (WTI) also saw gains, rising 0.71% to $64.83 per barrel.
Gasoline inventories also experienced a draw,with a decrease of 2.1 million barrels. Daily gasoline production remained steady at 10.1 million barrels. Middle distillate inventories fell by 4.1 million barrels, while production decreased to 4.8 million barrels per day. The current distillate inventories are 20% below the five-year average,indicating a tightening supply.
Total products supplied over the past four weeks averaged 20.0 million barrels per day, a 1.6% decrease compared to the same period last year. Gasoline demand averaged 9.1 million barrels per day.Distillate product supplied averaged 3.5 million barrels per day, down 3.2% year-over-year.
What’s next
Market watchers will be closely monitoring upcoming inventory reports and production data to assess the sustainability of these trends and their potential impact on crude oil prices and gasoline prices.