Oil prices were quite bullish in June but this month has started on the wrong foot, and the drawdown in EIA inventories couldn’t stop the decline. WTI climbed more than $10 during last month, reaching above $84 but it has reversed lower this week, falling below 0.83, however, the trend still remains bullish, with moving averages keeping the price supported.

The expected surge in summer fuel demand and escalating tensions in the Middle East propelled crude oil prices up by $12 in June. However, weaker-than-anticipated demand growth, especially in Asia—the world’s largest oil-consuming region—and reduced imports by China, the world’s top oil importer, have moderated the price gains.

WTI Oil Chart H4 – MAs Are Acting As Support

On the supply side, the oil markets are on edge due to potential disruptions from Hurricane Beryl, which has struck the Caribbean as a category 4 hurricane and is expected to affect oil production in Mexico’s Bay of Campeche. Additionally, today’s significant drawdown of over 10 million barrels should have been positive news for oil prices.

The weekly EIA oil inventory data reveals the following:

• Crude stocks: Down by 12.157 million barrels to 448.54 million, compared to the forecast of a 0.7 million barrel draw.
• Gasoline stocks: Decreased by 2.214 million barrels to 231.67 million, against the forecast of a 1.3 million barrel draw.
• Distillate stocks: Fell by 1.535 million barrels to 119.73 million, versus the forecast of a 1.2 million barrel draw.
• Cushing stocks: Increased by 345,000 barrels to 34.24 million. Last week’s change was -0.226 million.
• Heating oil stocks: Dropped by 572,000 barrels to 7.14 million.
• Net crude imports: Declined by 555,000 barrels per day to 2.15 million barrels per day.
• Ethanol output: Rose by 21,000 barrels per day to 1.06 million barrels per day.
• Crude exports: Increased by 491,000 barrels per day to 4.4 million barrels per day.
• Ethanol stocks: Went up by 171,000 barrels to 23.59 million.

US WTI Crude Oil Live Chart