US Crude Inventories Post Record 17.8 Million-Barrel Drop After Iran War Fallout
Summary
- U.S. crude inventories fell by 17.8 million barrels last week, marking the largest drop on record since the EIA began compiling the data.
- The fallout from the Iran war lifted the U.S. into a major global crude supplier, driving a record increase in exports.
- While Brent crude prices fell, Polymarket showed the odds of WTI topping $110 and $120 a barrel at 41%% and 19%%, respectively.
Forecast Trend Report by Period
U.S. crude inventories, including the Strategic Petroleum Reserve, posted a record weekly decline last week.
Bloomberg reported on May 20 that U.S. crude stockpiles fell by 17.8 million barrels from a week earlier. It was the biggest drop since the U.S. Energy Information Administration began compiling the data.
The sharp draw reflected fallout from the Iran war. Bloomberg attributed the decline to a record jump in exports, saying major buyers in Asia and Europe were unable to secure Middle Eastern crude and the U.S. emerged as a major global supplier.
According to Trading Economics, Brent crude, the international benchmark, was trading in the upper $106 range on May 20, down about 3.9% from the previous session.
Meanwhile, on global prediction market platform Polymarket, the odds that West Texas Intermediate would rise above $110 a barrel this month stood at 41% as of May 20. The probability of topping $120 a barrel this month was 19%.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
