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Fall in Oil Inventories Might Ease Oil’s Decline

Robert Scott
Fall in Oil Inventories Might Ease Oil’s Decline

According to the EIA’s (U.S. Energy Information Administration) report released on May 31, US crude oil inventories fell by ~3.6 MMbbls (million barrels) to ~434.5 MMbbls in the week ending May 25. The market expected a fall of 0.6 MMbbls based on an S&P Global Platts survey. On May 31, US crude oil July futures fell 1.7%. As we discussed in Part 1, other bearish factors caused the drop in crude oil prices despite bullish headline inventory data.