On Wednesday, June WTI crude oil fell by 1.14% to close at $101.84 per barrel, while June RBOB gasoline decreased by 2.14% to $3.63 per gallon, due to a stronger dollar and ongoing geopolitical tensions affecting global oil supplies. The International Energy Agency (IEA) reported a significant decline in global oil inventories by approximately 4 million barrels per day in March and April, with the market expected to remain “severely undersupplied” until October, even if conflicts subside.
Current estimates indicate that the ongoing conflict in the Strait of Hormuz has curtailed crude output in the Persian Gulf by around 14.5 million barrels per day, contributing to nearly 500 million barrels drawn from global stockpiles since the escalation began. In addition, the EIA’s weekly report noted a larger-than-expected drop in U.S. crude inventories, down 4.31 million barrels, compared to projections of a 2.45 million barrel decrease.
U.S. crude oil production rose by 1.0% to 13.710 million barrels per day as of May 8, although this remains below the November 2022 record high of 13.862 million barrels per day. The number of active U.S. oil rigs increased by 2 to a total of 410, just above a 4.25-year low.
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