The Energy Information Administration reported a decline of 500,000 barrels in inventory for the week ending on June 9. This decline contrasted with a previous week’s inventory build of 4.5 million barrels, which caused prices to decrease. According to the EIA, U.S. crude oil inventories currently stand at 459.2 million barrels, approximately 2% below the five-year average for this time of year.
- Crude Inventories down 🔽 459k bbl
- Gasoline up 🔺2.7M bbl
- Distillates up 🔺5.1M bbl
- SBR down 🔽 1.9M bbl
- Domestic prod: 12.4 MMbpd
- Impld gas demand: 9.22 Mbpd
Gasoline and Distillates
Gasoline stocks increased by 2.7 million barrels, in contrast to a previous week’s draw of 200,000 barrels. The average daily gasoline production reached 10.1 million barrels, compared to 10 million barrels per day in the previous week.
In the week ending June 9, middle distillate inventories rose by 5.1 million barrels, while the previous week had seen a build of 1 million barrels.
Meanwhile, oil prices continued to slide since Monday’s initial jump following the announcement of the latest OPEC+ production cut. However, later in the day, the decline was reversed.
At the time of writing, Brent crude was trading at $77.10 per barrel, and West Texas Intermediate was being sold at $72.58 per barrel, both experiencing an increase of more than a percentage point from the opening.
The persistent decline in prices earlier this week resulted from the mounting concern among traders about global economic growth. However, today’s news of additional cuts by Saudi Arabia began to have an impact, pushing prices higher.
According to a note from Philip Nova analyst quoted by Reuters, “The fears of recession, as more and more sombre economic readings point towards a slowdown, have kept a lid on oil prices, eroding all OPEC+’s efforts to keep prices afloat.”
Earlier this week, the Institute for Supply Management reported a contraction in the U.S. service sector, with a reading of 50.3 in May compared to 51.9 in April.