FX.co ★ US Oil Stockpiles Fall More Than Expected

US crude oil inventories declined by 9.1 million barrels in the week ended June 5, far exceeding expectations for a 3.4 million-barrel draw and following a 6.7 million-barrel drop the previous week. Even after a cumulative reduction of roughly 44 million barrels over the past eight weeks, overall crude stocks still stand about 7 million barrels above year-end levels. The Strategic Petroleum Reserve continued to contract as well, with an additional 7.9 million barrels withdrawn during the week. Inventories at Cushing, Oklahoma, fell by 1.125 million barrels, deepening a 279,000-barrel decline a week earlier. US crude production edged down to 13.707 million barrels per day from 13.715 million. Gasoline inventories decreased by 1.191 million barrels after rising 3.45 million barrels in the prior week, while distillate stocks increased by 1.3 million barrels, reversing a 214,000-barrel draw previously.