Crude oil inventories in the United States rose this week by 4.052 million barrels for the week ending May 24, according to The American Petroleum Institute (API), after analysts had forecast a 1.9 million barrel draw.
On Tuesday, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) rose by 0.9 million barrels as of May 31. Inventories are now at 340.2 million barrels—the highest level since March of 2023, but still well below the 656 million barrels in inventory in June 2020.
The U.S. active oil rig count, an early indicator of future output, fell by four this week to 492, the lowest since January 2022, energy services firm Baker Hughes said.
Last week, the Houthis expanded their reach and hit six vessels in three seas, the Red Sea, the Arabian Sea, and the Mediterranean Sea. The Houthis have also threatened to broaden attacks further in the Indian Ocean.
Also, in the continuation of tensions between Ukraine and Russia, an Ukrainian drone attack on an oil refinery in Novoshakhtinsk in Russia’s Rostov region early on June 6 has caused a fire.
According to a Reuters poll, most economists expect the first cut from the Fed funds rate to a 5.00%-5.25% range, from 5.25%-5.50% now, to come in September this year.
Data showed U.S. jobs growth accelerated far more than expected in May, keeping the Fed on track to hold off starting to cut interest rates until September at the earliest. The European Central Bank also went ahead with its first interest rate cut since 2019 on Thursday.
Chinese data on Friday showed exports grew for a second month in May while imports data underlined concerns about weak domestic demand as crude oil imports fell. China is the world’s largest crude oil buyer.