US crude inventories fell 8.3M barrels in the week ended June 12, the eighth straight weekly draw, the EIA said. The decline was more than double the 3.5M barrel consensus estimate.
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US crude oil inventories fell by 8.3 million barrels in the week ended June 12, the eighth consecutive weekly decline, the Energy Information Administration reported Wednesday. The draw was more than double the 3.5 million barrel decrease analysts had expected.
Commercial crude stocks are being drained at a pace that reflects both rising summer demand and the ongoing impact of Middle East supply disruptions. The combination of peak driving season consumption and reduced flows from the region has tightened the physical market faster than many forecasters anticipated.
The EIA data showed the draw was concentrated in Gulf Coast storage, where refiners are running at elevated rates to meet gasoline and diesel demand. Cushing, Oklahoma, the delivery point for the NYMEX contract, also posted a decline, though smaller than the national figure.
Refined product inventories offered a mixed picture. Gasoline stocks edged higher as refineries pushed output, while distillate supplies fell, reflecting stronger industrial and trucking demand. The net effect is a market where crude supply is being absorbed faster than new barrels are arriving.
The eight-week streak of draws has erased much of the surplus that built up earlier in the year. With OPEC+ production cuts still in place and the Middle East risk premium persisting, the path of least resistance for crude prices remains higher, though the pace of the rally will depend on whether the drawdown slows as summer ends.
Traders will watch next week's EIA report for signs that the draw is decelerating. A ninth consecutive decline would reinforce the view that the market is structurally tighter than the official demand forecasts suggest.
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