A surprise 4.1M barrel decline in crude stocks fails to offset broader demand concerns, pressuring oil lower.
Oil prices fell after a private survey reported a 4.1 million barrel crude inventory draw, exceeding expectations of a 4.1M decline. Distillates rose by 2.9M barrels, while gasoline stocks dropped 2.1M barrels, signaling mixed demand signals.
Analysts had anticipated a smaller draw, with prior reports showing weaker inventory movements. The quarterly 20% drop in oil prices marks the steepest decline since 2020, driven by oversupply risks and tepid demand outlook.
Markets remain cautious as supply risks persist, but concerns over global economic growth continue to weigh on sentiment.