• Brent and WTI crude futures rallied Thursday after the EIA reported a larger-than-expected draw in U.S. crude inventories, signaling tighter near-term supply.
  • The 3.5 million barrel decline in commercial crude stocks, versus analyst expectations of a 1.5 million barrel drop, pushed prices higher.
  • Traders are now weighing the supply tightness against broader demand concerns and upcoming OPEC+ decisions.

Crude oil futures extended gains on Thursday after the Energy Information Administration reported a bigger-than-expected draw in U.S. crude stockpiles, boosting sentiment that supply is tightening. Brent crude rose 1.2% to $82.50 a barrel, while West Texas Intermediate gained 1.3% to $78.40 a barrel, both hitting session highs following the data release.

The EIA's weekly Petroleum Status Report showed crude inventories fell by 3.5 million barrels for the week ended June 20, compared with analysts' consensus estimate of a 1.5 million barrel decline. The draw was driven by a rise in refinery runs, which climbed to 95% of capacity, and a drop in imports, according to the report. Analysts noted that the data points to a tightening domestic market, providing a floor under prices. “The larger-than-expected draw is a bullish signal for near-term crude prices,” said a New York-based oil trader. “But we're still seeing headwinds from global demand uncertainty.” The market is also eyeing product inventories: gasoline stocks fell by 500,000 barrels, while distillate supplies rose by 1 million barrels, a mixed signal for the energy complex.

Investors remain cautious about the broader demand picture, as economic data from China and Europe suggest slowing growth. Meanwhile, OPEC+ is set to meet next month to discuss output targets, with some members pushing for gradual easing of cuts. The EIA report, however, provided a short-term catalyst. “The draw confirms that U.S. supply is tightening, but the real test will be whether demand holds up,” said a London-based analyst. “Right now, it's a tug-of-war between inventory data and macroeconomic headwinds.”