U.S. crude oil inventories fell sharply last week, dropping 8.3 million barrels to 418.2 million barrels as of June 12, according to the Energy Information Administration. The draw exceeded analyst expectations of a 3.5 million barrel decline, driven by reduced net imports and refineries operating near full capacity.

The reduction comes amid continued emergency releases from the Strategic Petroleum Reserve, which decreased by 8.9 million barrels to 340.3 million barrels. Stocks at the Cushing, Oklahoma delivery hub fell to 20 million barrels, levels that could pressure near-term pricing if draws continue.

Production held steady at 13.8 million barrels daily, but imports declined to 5.1 million barrels per day while exports dropped to 4.3 million barrels daily. Net imports decreased by 240,000 barrels daily. Current inventories sit roughly 6% below the five-year seasonal average.

The larger-than-expected draw signals resilient demand and tighter supply conditions, potentially supporting oil prices in the near term. With emergency releases continuing and refinery runs elevated, the market faces a delicate balance between supply adequacy and price stability.