U.S. crude oil inventories fell by 4.3 million barrels in the week ended May 8, a significantly larger draw than consensus estimates, according to data from the Energy Information Administration (EIA).
"The larger-than-expected inventory draw suggests stronger demand or tighter supply than anticipated, which typically puts upward pressure on crude oil prices," said Julianne Geiger, an editor at Oilprice.com.
The EIA data showed inventories were about 0.3% below the five-year average for this time of year. The draw far exceeded the 2.3 million-barrel drop expected by analysts and also surpassed the American Petroleum Institute's (API) reported draw of 2.2 million barrels from the previous day. Oil prices reacted to the bullish data, with West Texas Intermediate (WTI) trading up 3.97% to $102 per barrel moments before the API data release on Tuesday.
The data follows a continued decrease from the nation's Strategic Petroleum Reserve (SPR), which saw a decline of 8.6 million barrels, bringing the total to 384.1 million barrels, its lowest point since October 2024. In refined products, the API reported a surprise build in gasoline inventories of 502,000 barrels, while distillate stocks fell by a modest 319,000 barrels. U.S. oil production saw a slight decline to 13.573 million barrels per day, according to the latest EIA data.
This article is for informational purposes only and does not constitute investment advice.
