Overview
- The Energy Information Administration reported an about 8.0 million barrel draw for the week ending May 29, leaving U.S. commercial crude at roughly 433.7 million barrels, about 3% below the five‑year seasonal average.
- The draw was driven by near‑record American exports of roughly 5.6–5.9 million barrels per day and strong refinery runs that drained domestic inventories.
- The Department of Energy released an additional roughly 8 million barrels from the Strategic Petroleum Reserve in the same week, adding to earlier SPR withdrawals that have altered domestic stock balances.
- Oil prices eased on Thursday after reports of an Israel‑Lebanon ceasefire and that President Trump is reluctant to resume full‑scale war, but the market is in backwardation and the low stocks keep upside price risk intact.
- Retail fuel costs are already well above last year and could rise further if the Strait of Hormuz remains effectively closed, so markets and policymakers will watch next week’s EIA data and any restoration of Middle East flows closely.