US Oil Inventories Fall for 7th Straight Week, Beat Forecasts

U.S. commercial crude oil inventories fell for the seventh consecutive week in the week ended June 5, according to data from the Energy Information Administration. The drawdown was larger than the 2.9 million barrel decline analysts had expected.

Seven straight weekly declines is the longest such streak since 2022. The cumulative draw has pushed total stockpiles below the five-year seasonal average for this time of year, a metric traders and refiners watch closely.

Refining demand typically rises in late spring as gasoline consumption picks up ahead of summer driving season. Lower imports have also contributed. West Texas Intermediate crude rose about 0.6% on the session after the release, a modest move that suggests the market had largely priced in a draw of this magnitude.

For energy producers, the persistent inventory drain provides a near-term floor near $70 per barrel for WTI. For refiners, tighter feedstock availability supports gasoline and diesel margins at a time when utilization rates are already running near 95% of capacity. The XLE energy sector index has lagged crude's gain this quarter, a divergence that has historically narrowed when inventory reports consistently surprise to the downside.

The broader crude oil profile remains defined by OPEC+ supply discipline and uncertain Chinese demand. Inventory data offers the most current check on the supply-demand balance.

The next EIA weekly petroleum status report is due Wednesday at 10:30 a.m. ET.