Crude oil prices rose following the U.S. Energy Information Administration's report of a significant 12.2 million barrel inventory decline for the week ending June 28. This contrasted with the previous week's estimated 3.6 million barrel build, which had weighed on oil prices. Gasoline and middle distillate inventories also saw draws, with gasoline production averaging 10.1 million barrels daily and middle distillate production averaging 5.1 million barrels daily. Geopolitical factors, such as concerns about escalating violence in the Middle East and the impact on oil supply, have also supported prices. Additionally, fears of production disruption in the Gulf of Mexico due to Hurricane Beryl subsided after it weakened to a tropical storm. The American Petroleum Institute estimated a 9 million barrel weekly inventory draw, further supporting oil prices. However, a potential broader conflict in the Middle East, particularly involving Iran, poses a significant risk to oil markets. U.S. crude oil inventories fell more than expected, and Macquarie strategists forecasted a 10.9 million barrel decrease for the week ending June 28. They also anticipated a slight increase in crude runs from refineries, a large reduction in net imports, and across-the-board draws in products, with implied demand for these products at approximately 14.8 million barrels per day. The U.S. Energy Information Administration's weekly petroleum status report for the week ending June 21 showed a big draw in US Gulf Coast gasoil inventories, offsetting rising run rates and output, while jet fuel stocks were down from three-year levels. The overall market sentiment has been influenced by a combination of inventory data, geopolitical tensions, and production concerns, contributing to the fluctuation in oil prices.
