After last week’s surprising inventory build, the latest US Energy Information Administration report underlined a resumption in the decline of oil stockpiles. Crude inventories dipped by 1.661 million barrels, missing expectations of a 2.739 million barrel drawdown. However, apart from the headline figure, the real fireworks transpired after the report highlighted a 2.096 million barrel increase in gasoline stockpiles for the week ending June 9th.
The surprise build-up was the latest sign of persistently weak demand even as the summer driving season enters its peak. The four-week average gas consumption is currently -1.20% below the year-earlier level. In addition, US Sentiment was hurt further after the International Energy Agency suggested that growing US output will lead to supply growth surpassing demand growth in 2018. After breaking below $45.00 a barrel, WTI’s next stop could be $42.00, a level not seen since the middle of November.