US oil inventories declined by 3.8 million barrels in the latest weekly data, reflecting reduced crude and gasoline stocks alongside increased refinery activity. Meanwhile, European stock markets closed lower as investors assessed interest rate outlooks and geopolitical developments.
Decline in US crude and gasoline inventories
According to the US Energy Information Administration (EIA), crude oil inventories fell by 3.8 million barrels to 408.4 million barrels for the week ending June 26.
The decline was smaller than analysts’ expectations, which had projected a drop of around 4.5 million barrels.
Gasoline inventories also decreased by 2.3 million barrels to 214 million barrels, exceeding market forecasts.
Cushing inventories increase
In contrast, inventories at the key delivery hub in Cushing, Oklahoma rose by 709,000 barrels during the same period, following several weeks of declines.
Refinery activity and imports rise
US refineries increased crude processing by 85,000 barrels per day, pushing utilization rates up by 0.5 percentage points.
Net crude oil imports also rose by 370,000 barrels per day, indicating stronger trade flows.
Key oil market indicators
Decline in crude and gasoline stocks
Increase in distillate inventories
Higher refinery utilization
Growth in net imports
Unexpected rise in distillate inventories
Distillate stocks, including diesel and heating oil, rose by 2.5 million barrels to 108.6 million barrels, contrary to expectations of a decline.
This reflects mixed supply-demand dynamics within the US energy market.
European stocks close lower
In Europe, stock markets ended the session in negative territory, with the Stoxx 600 index falling by 0.4 percent.
Technology stocks led the decline, dropping by 1.2 percent, as investors evaluated the possibility of US interest rates remaining higher for longer.
Key stock movements
ASML shares fell 4.6 percent
Schneider Electric dropped 3.1 percent after an acquisition deal
Associated British Foods declined 3.2 percent
Saab shares rose 3.3 percent after a defense contract with Ukraine
Market sentiment shaped by global factors
Investor sentiment was influenced by expectations of prolonged higher US interest rates, as well as developments in US-Iran negotiations, contributing to cautious trading in European markets.
Conclusion:
The latest US oil inventory data highlights mixed signals in energy markets, with declining crude and gasoline stocks but rising distillates. At the same time, European equities reflect broader concerns over interest rates and geopolitical developments, keeping markets under pressure.
