Weekly decline in crude inventories exceeds expectations, signaling potential supply tightness in the oil market.
US crude oil inventories fell by 2.3 million barrels for the week ended May 1, the Energy Information Administration reported. The drawdown reflects stronger-than-anticipated demand or reduced production levels.
Analysts had forecast a smaller decline, with consensus estimates hovering around 1.5 million barrels. The prior week saw a modest build of 500,000 barrels, contrasting sharply with this week’s larger-than-expected drop.
Oil prices edged higher following the release, as traders weighed the implications of tighter supply against broader macroeconomic concerns.