U.S. crude stocks fell by 2.2 million barrels last week to 416.3 million barrels, government data showed, compared with analysts’ expectations in a Reuters poll for a drop of 320,000 barrels.
Crude stocks at the Cushing, Oklahoma, storage hub and delivery point for U.S. crude futures fell by 943,000 barrels on the week, to just under 22 million barrels, the lowest since July 2022, according to data. data.
“The big news was the storage at Cushing. And that is causing the entire complex to recover. The biggest concern for traders is that Cushing is approaching multi-month operating lows. That is an upward force for crude oil prices” said Dennis Kissler of BOK Financial.
Stockpiles at Cushing have been declining to historically low levels due to strong refining and export demand, raising concerns about the quality of the remaining oil at the hub and the possibility of falling below minimum operating levels.
The reduction in US crude stocks comes as Saudi Arabia and Russia, as part of the Organization of the Petroleum Exporting Countries and its allies, known together as OPEC+, have extended voluntary production cuts of 1.3 million bpd until the end of the year, worrying markets about supply shortages.