On June 20, August WTI crude oil closed up $0.55 (0.85%) at $65.12, while August RBOB gasoline fell $0.0049 (0.24%) to $2.07. The EIA reported a significant draw in U.S. crude inventories of 5.84 million barrels, surpassing the expected 1.1 million barrels, alongside a 3-1/2 year high in gasoline demand at 9.688 million barrels per day, a 4.2% increase week-over-week.
However, crude oil prices faced downward pressure after Russia indicated it is open to increasing output at the upcoming OPEC+ meeting on July 6. Recent concerns about a global oil glut have arisen, exacerbated by OPEC+ agreements to gradually restore 2.2 million barrels per day of production. U.S. crude production remained steady at 13.435 million barrels per day, with active oil rigs at a 3-3/4 year low of 438.
Gasoline demand is expected to rise further, with the AAA projecting that 61.6 million Americans will travel by car over the upcoming Fourth of July holiday, marking a 2.2% increase from last year. Additionally, crude oil in storage fell by 13% week-over-week to 79.66 million barrels on stationary tankers, indicating tightening supply conditions.
