Oil prices rose significantly, continuing the recent rally, and reaching the highest level since May 30, boosted by data on US crude inventories. Investors also focused on updated forecasts from the International Energy Agency (IEA).
Yesterday, the American Petroleum Institute reported that U.S. oil inventories fell by 2.43 million barrels in the week to June 7. This exceeded the expected draw of 1.8 million barrels and reversed the previous week's 4 million barrel build. Cushing inventories fell by 1.937 million barrels after increasing by 983,000 barrels in the previous week. Gasoline stocks fell by 2.55 million barrels during the past week, while distillate stocks (including diesel and heating oil) rose by about 972,000 barrels. The API data typically foreshadows a similar reading from the official U.S. Energy Information Administration (EIA) report due later Wednesday.
Meanwhile, today the International Energy Agency (IEA) has revised its oil demand forecast for 2024. "World oil demand growth continues to slow, with 2024 gains now seen at 960 kb/d, 100 kb/d below last month's forecast," the IEA said, adding that in 2025, global supply is forecast to rise by 1.8 mb/d, as non-OPEC+ output increases by 1.5 mb/d.
However, traders are being cautious ahead of the conclusion of the Fed meeting later in the day, as well as the release of key U.S. consumer price index data.