VINACHEM

At 459.7 million barrels, crude oil inventories in the U.S. are around 2% below the five-year average for this time of the year.
Last week’s change compares with a substantial draw of 12.5 million barrels for the previous week, which caused prices to jump but only for a short while.

This week, the American Petroleum Institute surprised markets with a large inventory build estimate that pressured prices on Wednesday but Thursday presented a chance for a reversal as the House of Representatives voted for the debt ceiling suspension deal agreed by President Biden and House Speaker Kevin McCarthy.
Meanwhile, the EIA reported a 200,000-barrel inventory draw in gasoline, with production averaging 10 million barrels daily in the week to May 26.

This compared with a draw of 2.1 million barrels for the previous week, when production averaged 10.3 million barrels daily.

In middle distillates, the authority estimated an inventory build of 1 million barrels for the week to May 26, and a production rate of 5 million bpd.

This compared with an inventory draw of 600,000 barrels for the previous week, when production averaged 4.9 million bpd.
At the time of writing, Brent crude traded at $73.11 per barrel, with West Texas Intermediate at $68.86 per barrel, both up since opening on the day when Midland crude joins the Brent basket.

This is the first time a non-European crude oil grade will be part of the global benchmark.

Meanwhile, a poll Reuters ran among economists has suggested that prices will not be able to top $100 this year, remaining below $90 per barrel for the remainder of the year.

According to the respondents in the poll, Brent will average $84.73 per barrel this year, while West Texas Intermediate will average $79.20 per barrel. Both figures were downward revisions on earlier forecasts.