Oil Prices Climb As API Report Adds To Bullish Sentiment

The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 2.108-million barrels for the week ending June 4.

Analysts had predicted a draw of 2.036 million barrels for the week.

In the previous week, the API reported a draw in oil inventories of 5.36 million barrels after analysts had predicted a draw half that size of 2.114 million barrels. Crude oil inventories have fallen by more than 14 million barrels since the start of 2021, according to API data, but are still up 43 million barrels since January 2020.

Oil prices were up again on Tuesday after U.S. Secretary of State Antony Blinken said that even if the U.S. were to reach a nuclear deal with Iran, hundreds of sanctions would remain in place in the clearest indication yet that more Iranian oil barrels are not imminently headed for the market. 

At 4:07 p.m. EST, WTI was trading up $0.97 (+1.40%) at $70.20 prior to the data release-up nearly $2 per barrel on the week. Brent crude was trading up $0.86 per barrel (+1.20%) at $72.35 per barrel.

Related: How An Oil Pipeline Hack Sent Bitcoin Prices Tumbling

While crude oil inventories fell yet again this week, U.S. oil production fell to an average of 10.8 million bpd for the week ending May 28, according to the latest data from the Energy Information Administration. This is down 200,000 bpd from the week prior.

The API reported a build in gasoline inventories of 2.405 million barrels for the week ending June 4-on top of the previous week's 2.51-million-barrel build. Analysts had expected a much smaller build of 698,000-barrel for the week.

Distillate stocks saw an increase in inventories this week of 3.752 million barrels for the week, on top of last week's 1.585-million-barrel increase.

Cushing inventories fell this week by 420,000 barrels.

Post data release, at 4:37 p.m. EDT, the WTI benchmark was trading at $70.23 while Brent crude was trading at $72.36 per barrel.

More Top Reads From Oilprice.com:

• Hedge Funds Grow More Bullish On U.S. Crude Oil
• Biden Nixes $35 Billion In Fossil Fuel Tax Benefits
• Oil Could Reach $80 This Summer, But There's A Catch