US Oil Stockpiles Fall, Market Focuses on Geopolitics
US crude oil inventories fell sharply again in the week ending June 5, 2026, marking the seventh consecutive weekly decline. According to the latest data, inventories plummeted by 7.228 million barrels, far exceeding analysts' estimates of a 4 million-barrel decline. Storage at Cushing, Oklahoma, also fell by 801,000 barrels, extending a nearly two-month downturn.
Refinery activity increased, with oil processing rising by 81,000 barrels per day, indicating that refining demand remains strong despite low inventories. However, gasoline inventories rose by 186,000 barrels, against the expected 0.5 million-barrel decline, while distillate stocks, such as diesel and heating oil, rose by 200,000 barrels, compared to expectations for a 0.5 million-barrel decline. These trends highlight the complex demand dynamics in the refined fuels sector.
Additionally, US crude oil imports increased by 525,000 barrels per day, helping to partially offset the domestic supply deficit. The combination of declining crude stocks, higher refinery processing, and rising gasoline and distillate inventories reflects pressure on the global oil market, which remains affected by geopolitical uncertainty in the Middle East.
Analysts highlight that this decline in US crude oil inventories is further heightening market tensions, particularly amid the escalating conflict between the US and Iran. The risk of disruption to oil flows from the Strait of Hormuz remains a major concern, as the region serves as a critical transit route for nearly a fifth of the world's oil.
These fundamental impacts have kept investors wary of Brent and WTI oil prices, although daily fluctuations tend to be slight. Brent is currently trading around US$92 per barrel, fluctuating slightly with stockpiles and geopolitical news. Tight supplies are likely to continue to support prices, with potential upward pressure if conflicts in the Middle East escalate.
Source: Newsmaker.id
