Brent crude oil prices rose 4.93% in June 2024 due to falling US oil inventories.
These gains offset the losses incurred earlier due to the decision of the Organisation of the Petroleum Exporting Countries, or OPEC, and their allies to loosen the oil production the 2.2 million barrels per day voluntarily supply cuts.
Brent Crude Oil Prices In 2024
Crude oil price gained 12.85% so far this year, of which 5% gains were earned in June.
In June, Brent crude oil prices gained $9.2 per barrel to trade above the $85 a barrel, compared with $76 a barrel at the start of the month.
US Oil Stockpiles
To understand this gain in crude oil price, a look at the weekly US crude inventory data, released by the Energy Information Administration, is very crucial.
US crude inventories fell as oil refineries hiked output, according to the latest data for the week ended June 14. Government data showed US oil stockpiles declining by 2.55 million barrels. This is distinctively different from the projected 2.26 million barrel increase as per an industry report on Tuesday, according to Bloomberg.
Gasoline stocks rose by 3.3 million barrels, compared with analyst expectations as per a Reuters poll for 188,000 barrel gain. Distillate stockpiles, which include diesel and heating oil, rose by 2.7 million barrels versus expectations for a 164,000 barrel drop, the EIA data showed.
OPEC+ Decision
Oil prices fell to an intraday low of over 4% on June 4, after the OPEC and their allies stated their plan to gradually reverse the current voluntary supply cuts.
The losses, however, were soon recovered after the organisation extended the supply cuts and stated that any subsequent plan to return barrels to the market would hinge on market conditions.
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