U.S. crude oil inventories fell by 7.2 million barrels for the week ending June 5, according to the Energy Information Administration (EIA). Total commercial stockpiles now stand at 426.5 million barrels, 5% below the five-year average for this time of year. The American Petroleum Institute (API) had earlier reported a larger draw of 9.119 million barrels.
Market Reaction
Following the release of the inventory data, crude oil futures prices moved higher:
- Brent crude traded at $92.82 per barrel, up $1.37 (+1.50%).
- West Texas Intermediate (WTI) crude traded at $89.81 per barrel, up $1.61 (+1.83%).
Product Inventories
- Gasoline: Inventories increased by 200,000 barrels. Average daily gasoline production was 9.7 million barrels.
- Distillate (including diesel and heating oil): Inventories decreased by 200,000 barrels, with average daily production at 5.2 million barrels. Distillate inventories remain 13% below the five-year average.
Demand Indicators
- Total products supplied (a proxy for demand) averaged 20.6 million barrels per day over the last four weeks, up 3.5% year-over-year.
- Gasoline demand averaged 8.8 million barrels per day over the same period.
- Distillate demand averaged 3.7 million barrels per day, representing a 7.2% increase compared to the same period last year.