For the first summer driving season in five years, the U.S. has seen the largest one-week reduction (9.9 million bbl) in crude inventories. The latest Energy Information Administration update reports that crude inventories now sit at 416.6 million bbl. When compared to this time last year, total crude inventories around the country are lower by 92.6 million bbl. Tighter oil supplies combined with the economic situation in Venezuela and pending Iran sanctions have sustained volatility in the crude market. On Wednesday, WTI prices boosted to a closing price of $72.76/bbl – its highest price in 3.5 years. If the decline in inventories continues and oil prices remain high, motorists could see a spike in gas prices later this summer despite the anticipated increase in production from OPEC and its partners.
Oil Prices Reach Multi-Year High after Record Crude Drawdown