US crude inventories drop 3.8M barrels, fall below 5-year average

Key Facts

1The U.S. Energy Information Administration reported a 3.8 million barrel draw in commercial crude inventories for the week ending June 26, bringing stocks to 408.4 million barrels, which is now 7% below the five-year average for this time of year.

Amid mixed U.S. economic data, the Energy Information Administration reported a 3.8 million barrel draw in commercial crude inventories for the week ending June 26. Total stocks stood at 408.4 million barrels, now 7% below the five-year average for this time of year, according to the report. The decline reinforces expectations of tighter supply in the oil market.

The draw coincides with U.S. data showing GDP growth of 2.1% in Q1, beating forecasts, while durable goods orders fell 4.5% in May and consumer sentiment slipped to 49.5. Notably, the actual draw was smaller than the American Petroleum Institute's preliminary estimate of 6.07 million barrels, which could temper the bullish momentum.

Traders are now eyeing upcoming U.S. economic releases, including oil demand reports and manufacturing indices, to gauge the sustainability of crude demand. With inventories remaining below the five-year average, the market remains sensitive to any shifts in supply or demand, especially ahead of potential OPEC+ meetings.