US oil inventories data has now been released, recording a massive drop of more than 12 million barrels, while expectations hovered around a drop of only 400,000 barrels.
The US Energy Information Administration data revealed a decrease in oil inventories by 12.157 million barrels, compared to expectations of a decrease of about 400 thousand barrels, while the previous reading recorded a decrease of 3.591 million barrels.
Both benchmarks closed lower on Tuesday as concerns faded that Hurricane Beryl would disrupt production in the Gulf of Mexico. It is expected to weaken into a tropical storm by late this week, according to the U.S. National Hurricane Center.
Meanwhile, gasoline demand in the United States is expected to rise as the summer travel season kicks off with the Independence Day holiday this week. The American Automobile Association forecasts holiday travel to be 5.2% higher than in 2023, with car travel up 4.8%.
Meanwhile, a Reuters survey showed on Tuesday that OPEC output rose in June for a second straight month, as higher supplies from Nigeria and Iran offset the impact of voluntary supply cuts from other OPEC+ members.
Brent crude is now trading at $86.56 a barrel after the data, up 0.4% on the day, with WTI crude above $83.19, up about 0.48% on the day.
