U.S. Crude Inventories Drop Less Than Forecast, Oil Prices Slip

U.S. commercial crude oil inventories fell less than analysts anticipated last week, signaling softer demand and pressuring oil futures on Thursday. The Energy Information Administration reported a draw of 1.5 million barrels for the week ended May 22, missing consensus forecasts for a 2.5 million-barrel decline. Total stockpiles now stand at 455.8 million barrels, about 4% below the five-year average for this time of year. West Texas Intermediate crude for July delivery dropped $1.48, or 2.1%, to settle at $69.02 a barrel on the New York Mercantile Exchange. Brent crude, the international benchmark, declined $1.36 to $73.11. The smaller-than-expected inventory reduction, combined with a surprise build in gasoline stockpiles of 2.2 million barrels, reinforced concerns over weakening fuel demand during the U.S. summer driving season. Refinery utilization rates edged up 0.3 percentage points to 93.1%, while total products supplied—a proxy for demand—averaged 20.1 million barrels per day over the past four weeks, down 0.4% from the same period a year earlier.