Oil Prices Rally Amid Major Inventory Draw, OPEC+ Warns on Hormuz
WTI crude surged past $93 Tuesday afternoon as API reported a larger-than-expected 6.75 million barrel U.S. stockpile draw.
West Texas Intermediate crude oil prices gained $1.28 Tuesday to trade at $93.44 per barrel, a 1.39% increase for the session. Brent crude rose $0.84 to $95.82. The rally followed a report showing a significant tightening of U.S. commercial crude inventories.
According to data from OilPrice.com, the American Petroleum Institute estimated a draw of 6.75 million barrels from U.S. crude oil inventories for the week ending May 29. This exceeded analyst expectations for a 3.6 million barrel draw and followed a 2.8 million barrel decline the prior week. Inventories at the Cushing, Oklahoma, storage hub also fell by 279,000 barrels.
Supporting the bullish sentiment was a continued drawdown from the U.S. Strategic Petroleum Reserve (SPR), with 8 million barrels released last week, bringing the total to 357.1 million barrels. OilPrice.com noted this is the lowest SPR level since January 2024. The data also showed U.S. production rose slightly to 13.715 million barrels per day for the week ending May 22.
While crude stocks fell, the API reported a surprise 3.45 million barrel build in gasoline inventories. Distillate stocks, which include diesel, fell by 214,000 barrels. Prior EIA data showed distillate inventories were already 11% below the five-year average.
Geopolitical supply concerns remain elevated. Analysts gathered at OPEC's Vienna headquarters for a technical meeting on Monday were told that disruptions related to the Strait of Hormuz are expected to last through the end of the year, Rigzone reported. This prolonged risk to global oil transit is a key factor supporting prices.
For Bakken operators, the price strength is tempered by a regional discount. The Bakken differential stood at -$3.42 versus WTI on Tuesday, implying a local price near $90.02 per barrel. The combination of high global benchmarks and strong U.S. demand, evidenced by inventory draws, supports drilling economics in the Williston Basin despite the differential.
Separately, Russian oil giant Rosneft reported increased profit on higher oil prices for the first quarter of 2026, according to Rigzone. CEO Igor Sechin, however, warned the company may book impairments due to "significant operational risks" including infrastructure attacks.
Natural gas prices showed little movement Tuesday, trading at $3.17, down one cent on the day.
Source
Live Price Data; OilPrice.com article "US Crude Oil Inventories Continue Downward Plunge But Gasoline Surprises" published June 2, 2026; Rigzone summaries "Analysts Tell OPEC+ Hormuz Disruption Will Last Through Year End" and "Rosneft Sees Increase in Profit on Higher Oil Prices" published June 2, 2026.
