US Crude Inventories Plunge by 8 Million Barrels, Doubling Expectations

Reflecting robust refining demand and strong exports, US crude oil inventories plunged by 8 million barrels for the week ending May 29, nearly doubling market expectations. Conversely, gasoline inventories defied analyst forecasts of a decrease by rising 3.36 million barrels. Following this substantial draw, US commercial stockpiles are now positioned 3% below the five-year average for this period of the year.

This significant inventory contraction occurs amid a tightening market, following the American Petroleum Institute (API) report on May 27 which indicated an initial draw of 2.8 million barrels. Per market data, this follows a previous weekly draw of 7.86 million barrels, confirming a persistent downward trend in crude supply even as surprise builds in gasoline and distillates suggest potential softening in end-user fuel demand.

Traders should monitor crude price levels following this release, particularly as it aligns with broader macro signals such as the Core PCE Price Index which printed at 0.2% on May 28, 2026. Upcoming catalysts include further Federal Reserve commentary and global manufacturing data which will be critical in determining if industrial demand can offset the recent build in refined product inventories.