U.S. oil and fuel inventories dropped sharply last week, signaling powerful American demand that is pushing prices higher. Energy Information Administration data show crude stockpiles fell by 5.8 million barrels—well beyond expectations—while gasoline and distillate reserves also declined significantly.
Refinery utilization reached 94.7%, the highest since July 2024, reflecting strong domestic output. Gasoline supplied—a key demand metric—rose to 9.7 million barrels per day, the highest level since December 2021. These data points reveal a robust U.S. economy driving energy consumption, shifting market focus from global geopolitical concerns toward domestic demand.
Oil benchmarks responded swiftly. Brent crude climbed to about $67.97 per barrel, while WTI rose to roughly $65.27—a more than 1% gain in a single session. This bounce followed a recent dip tied to the Iran–Israel ceasefire and eased Middle East tensions.
Meanwhile, investors are eyeing potential Federal Reserve rate cuts, expected by September, as another factor supporting prices. Lower interest rates typically boost economic activity and energy usage.
This mix of strong U.S. demand, tight inventories, and supportive monetary policy suggests a stabilization of oil prices in the $65–$70 range. While geopolitical flashpoints could still cause market swings, current fundamentals point to a healthier outlook led by America’s energy appetite.
