US Oil Stockpiles Tumble as Geopolitical Tensions Surge

The report arrives against a backdrop of escalating conflict, with Brent futures jumping 7.06% to reach $90.03 per barrel and WTI climbing 6.95% to $84.77. These gains follow joint airstrikes by the United States and Saudi Arabia against Iran-aligned militias in Iraq, a direct retaliation for drone attacks on Saudi oil infrastructure. While crude stocks contracted significantly, fuel markets showed divergent trends. Gasoline inventories saw a modest build, supported by an increase in average daily production to 9.9 million barrels. Middle distillates also rose by 1.1 million barrels, yet remain 9% below their five-year average. Despite the production uptick, broader demand metrics remain sluggish. Total product supplied—a key indicator of domestic consumption—averaged 20.3 million barrels per day over the last month, marking a 2.3% decline from the previous year. Gasoline demand held steady at 8.9 million barrels per day, while distillate demand saw a 4.7% year-over-year increase.