ING’s Warren Patterson and Ewa Manthey note that Oil prices sold off heavily despite evidence of tightening US fundamentals. EIA data showed record weekly declines in total US crude inventories, including significant Strategic Petroleum Reserve withdrawals, while exports stayed elevated and gasoline stocks fell to their lowest seasonal level since 2014, supporting refined product cracks into the summer driving season.

US inventories fall as exports stay high

"Oil prices sold off heavily yesterday, with hopes growing once again for a potential US-Iran agreement."

"Meanwhile, there appear to be additional crude oil tankers passing through the Strait of Hormuz."

"This highlights tightening in the US market on the back of stronger oil exports, amid ongoing supply disruptions in the Middle East."

"Crude oil and refined product exports remained above 13m b/d over the week, well above the average 11.1m b/d exported between the start of the year and the start of the war in Iran."

"This leaves US gasoline inventories at their lowest seasonal levels since 2014, suggesting gasoline cracks remain well supported heading into the summer."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)