US crude stockpiles shrink for 10th straight week

US crude oil inventories fell in the week ended June 26, extending the decline to the tenth consecutive week and beating expectations of a decrease by 3.1 million barrels. The draw came in at 4.2 million barrels, according to the Energy Information Administration.

Total commercial crude stocks now sit at 433.7 million barrels, roughly 2% below the five-year average for this time of year. The sustained drawdown reflects a tightening physical market, with refinery runs holding near 93% of capacity and exports averaging about 4.5 million barrels a day over the past month.

Gasoline inventories rose by 1.1 million barrels, a modest build that kept total supply near the upper end of the seasonal range. Distillate stockpiles, which include diesel and heating oil, fell by 1.3 million barrels, running about 8% below the five-year average.

The continued inventory decline supports the view that global supply is struggling to keep pace with demand, even as OPEC+ maintains its production cuts. US production held steady at 13.2 million barrels a day, unchanged from the prior week.

For traders watching the crude market, the key question is whether the drawdown rate can persist into the third quarter. Refinery maintenance season typically begins in September, which could ease crude demand and slow the pace of inventory declines. On the supply side, any signal from OPEC+ about unwinding cuts would shift the balance.

WTI crude traded near $81.50 a barrel after the report, up about 1.2% on the session. The front-month contract has gained roughly 14% this year, supported by the steady inventory draw and geopolitical risk premiums.

The EIA's next weekly report is due Wednesday, July 3.