An unexpected rise in gasoline stocks in the United States caused crude oil prices to drop by 0.54%, ultimately finishing at 6,453. Instead of the 400,000 barrel drop that was expected, petrol stockpiles increased by 2 million barrels, indicating higher demand before the Memorial Day weekend.
Expectations for interest rate decreases were tempered by the U.S. economy’s first-quarter growth of 1.3%, which was less than the 1.6% growth forecast, and cautious remarks regarding inflation risks from a Federal Reserve member. A production reduction extension into 2025 is expected at the next OPEC+ meeting, attracting investors’ attention.
With a 0.6% increase over February, U.S. crude output hit a record high of 13.2 million barrels per day (bpd) in March. Product supplied, a measure of demand, fell by 0.4% to 19.9 million bpd despite this increase. Crude oil rail shipments fell by 8,000 barrels per day in March to 282,000. On the other hand, shipments from Canada to the United States decreased by 30,000 bpd to 73,000 bpd, while shipments within the country grew by 22,000 bpd to 208,000 bpd.
For the week ending May 24, 2024, U.S. crude oil stocks fell by 4.16 million barrels, doubling the predicted 1.95 million barrel reduction. This was the highest decline in five weeks. At the delivery hub in Cushing, Oklahoma, stocks dropped by 1.766 million barrels.
