WTI Crude oil futures surged to nearly $78 per barrel on Friday, marking their highest level since January, as Israel’s attack on Iran heightened fears of significant supply disruptions. Investors remain wary of potential Iranian retaliation and possible disruptions to the Strait of Hormuz, a vital chokepoint for about 20% of global oil shipments. Meanwhile, EIA data revealed a large drawdown in US crude inventories, underlining firm demand. Softer US inflation also reinforced expectations for Fed rate cuts by September, which could bolster economic growth and oil consumption further.
The US Energy Information Administration or EIA stated in a latest weekly update that crude oil refinery inputs averaged 17.2 million barrels per day during the week ending June 6, 2025, which was 228 thousand barrels per day more than the previous week’s average. Refineries operated at 94.3% of their operable capacity last week. US crude oil imports averaged 6.2 million barrels per day last week, decreased by 170 thousand barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 6.2 million barrels per day, 13.3% less than the same four-week period last year.
US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 3.6 million barrels from the previous week. At 432.4 million barrels, US crude oil inventories are about 8% below the five-year average for this time of year. Total motor gasoline inventories increased by 1.5 million barrels from last week and are about 2% below the five-year average for this time of year.