Oil News: Crude Oil Futures Fall on Ceasefire Talk as Inventory Crunch Deepens
By:
Key Points:
- U.S. crude inventories, including the SPR, dropped to 1.5 billion barrels, their lowest level since 2004.
- Crude oil prices fell on ceasefire hopes, but global inventory draws near 9 million bpd keep supply concerns elevated.
- China's 29% drop in crude imports clouds the oil outlook, signaling either demand weakness or hidden stock draws.
July West Texas Intermediate crude oil futures dropped to $89.37 a barrel Tuesday. Down $1.93. Down 2.11%. The ceasefire headlines knocked prices lower for the second time in a week. Meanwhile global crude inventories are draining at nearly 9 million barrels per day. Cushing, Oklahoma is sitting at 22.4 million barrels and approaching operational minimums. Total U.S. crude inventories including the Strategic Petroleum Reserve have fallen to 1.5 billion barrels. Lowest since 2004. The market is selling the headline while the supply math gets worse by the week. Washington is waiting on Tehran and the chart is waiting on $100. Here is what breaks first.