After two consecutive weeks of crude oil inventory builds, this week the Energy Information Administration offered some respite for prices with a draw, or 3.1 million barrels for the week of June 14.
If oil prices remain apathetic despite a spike in tensions in the Middle East, the EIA also reported a draw in gasoline inventories, of 1.7 million barrels, after two weekly builds in a row totaling 4 million barrels.
Gasoline builds in driving season are invariably taken as bad news and cause for concern, but truth be told it is early days and prices that are more than this time last year, so it would be too early to draw any conclusions about gasoline demand just yet.
EIA reported a 600,000-barrel inventory draw, which compared with a 1
Gasoline production last week averaged 10.4 million bpd and distillate fuel production stood at 5.4 million bpd. This compares with 10 million bpd or gasoline a week earlier and 5.4 million bpd or distillate feels. Refiners processed 17.3 million bpd, versus 17.1 million bpd a week earlier. Related: Norwegian Oil Pioneer: Big Oil's Exodus Has Started
EIA's data may provide some boost to oil prices ahead of the G20 summit where Presidents Trump and X are scheduled to meet and discuss the situation.
The geopolitical situation in the Middle East remains tense with the US claiming it has evidence that the Iranian Revolutionary Guard was behind the latest attacks on two tankers in the Gulf of Oman, in which Iran categorically denying any involvement. The investigation into the event is ongoing. Prices reacted with the news of the attacks have been quickly retreated, possibly because the fundamentals do not merit a rise in prices.
At the time of writing, Brent crude was trading at US $ 61.72 a barrel, with West Texas Intermediate at US $ 53.78 at barrel, both slightly down from opening of trade.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com: