Crude Oil Inventories Plummet as Global Demand Remains Strong

US crude oil inventories fell by 7.9 million barrels last week to 445 million barrels, according to data from the Energy Information Administration (EIA). This was a larger drop than analysts expected, who had forecasted a draw of 2.9 million barrels.

The EIA also reported that crude stocks at the Cushing delivery hub fell by 1.6 million barrels in the week, while US Strategic Petroleum Reserve exports declined by 9.9 million barrels, setting a record for the largest weekly drop.

Despite the drawdowns in oil inventories, global demand remains strong, with net US crude imports rising by 3,000 barrels per day and exports climbing to 5.6 million barrels per day, the EIA said.