Commercial crude oil stockpiles dropped 3.8 million barrels last week, exceeding analyst forecasts of a 3.1 million barrel decline. The unexpected drawdown marks the tenth consecutive week of falling inventories, driven by sustained export demand and increased refinery activity. This suggests tighter supply conditions than markets anticipated.

U.S. commercial crude stocks now sit at 408.4 million barrels, roughly 7% below seasonal averages. Meanwhile, the Strategic Petroleum Reserve continued releasing emergency supplies, falling by 5.5 million barrels to 325.7 million barrels. Cushing, Oklahoma, the Nymex delivery point, saw inventories climb to 19.7 million barrels, providing some relief to benchmark pricing pressures.

Production held steady at 13.8 million barrels daily, while imports slipped to 5.3 million barrels per day. Exports declined more sharply to 4 million barrels daily. The persistent inventory draw despite stable production points to strong demand fundamentals, potentially supporting crude prices as summer driving season peaks.