The American Petroleum Institute (API) announced on Tuesday that U.S. crude oil inventories decreased by 4.277 million barrels for the week ending June 20. This significant reduction comes after a larger decline of 10.133 million barrels reported in the previous week. The analysts had anticipated a more modest drop of 0.600 million barrels this time.
The decline in U.S. inventories coincided with a notable drop in oil prices, which fell approximately 6 percent on Tuesday, marking a two-week low. Market reactions are being influenced by ongoing oil supply disruptions in the Middle East, contributing to increased volatility in oil pricing. Brent crude oil prices tumbled by 6.1 percent, settling at 67.14 U.S. dollars per barrel.
Meanwhile, West Texas Intermediate (WTI) crude experienced a similar fate, falling by 6 percent to reach 64.37 dollars per barrel. These declines reflect market concerns over both supply stability and broader economic conditions impacting oil demand. As the situation continues to evolve, industry stakeholders will be closely monitoring future reports from the API and other market indicators to gauge the trajectory of crude oil inventories and pricing trends.
The interplay between production levels, geopolitical factors, and market expectations will remain critical in shaping the energy landscape in the coming weeks.