Oil prices experienced a decline today following the U.S. Energy Information Administration’s report of a 3.7 million barrel increase in inventory for the week ending June 7. This increase contrasted with the previous week’s build of 1.2 million barrels, which had also contributed to a rise in fuel inventories, causing pressure on benchmark prices. The current data indicated additional builds in gasoline and middle distillate inventories, with a notable increase of 2.6 million barrels in gasoline and 900,000 barrels in middle distillates for the same week.
The American Petroleum Institute had previously estimated a decline of 2.43 million barrels in crude inventory for the same week, which initially boosted oil prices after a slow start to the week. This upward trend was further supported by optimistic reports on oil demand from both OPEC and the EIA. The EIA revised its oil demand growth outlook from 900,000 bpd to 1.1 million bpd for the year, while OPEC maintained a forecast for demand growth exceeding 2 million barrels daily. Analysts noted that despite plans to phase out voluntary cuts later in the year, OPEC’s forecasts were likely to be well-received by the market.
Overall, the fluctuating inventory levels and production rates, along with varying estimations from key organizations, continue to impact global oil prices. The optimistic outlook on oil demand from both OPEC and the EIA has provided some support to prices following the recent inventory reports. The market remains attentive to inventory fluctuations and demand forecasts as key indicators for the future trajectory of oil prices.