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Energy
Energy

US Crude Oil Inventories Decline Amid Strait of Hormuz Supply Pressures

US crude oil inventories fell by 6.1 million barrels in late June as commercial stockpiles face sustained downward pressure.

According to the American Petroleum Institute (API), US crude oil inventories declined by 6.072 million barrels in the week ending June 26, accelerating from the prior week's 765,000-barrel drop. The steeper drawdown reflects tightening supply conditions as geopolitical tensions in the Strait of Hormuz continue to weigh on global crude flows entering the United States market.

Commercial crude oil inventories excluding the Strategic Petroleum Reserve have been in sustained decline, shedding 59.4 million barrels over an eleven-week period. However, year-to-date inventory levels remain relatively modest, down just 8 million barrels since the start of the year, a figure that reflects continued government releases from the SPR helping to offset broader commercial stock reductions.

The competing pressures on US crude supplies—rapid commercial drawdowns paired with geopolitical supply concerns at a critical chokepoint—underscore the tightness in energy markets heading into summer driving season. Market observers will be watching whether the inventory trajectory continues or stabilizes as seasonal demand patterns evolve.

crude oilenergy inventoriespetroleum marketssupply chaingeopolitics
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