The American Petroleum Institute reported that U.S. commercial crude inventories fell by 6.8 million barrels in the week ending May 29, 2026, according to data cited by market sources on Tuesday, June 2. The American Petroleum Institute thus confirmed the seventh consecutive weekly reduction, an unprecedented recent streak that is compressing storage buffers that traditionally cushion crude price fluctuations.
American Petroleum Institute Records 7 Consecutive Weeks of Decline
The cumulative decline during this seven-week cycle exceeds 40 million barrels, a volume equivalent to more than two days of U.S. oil consumption. The pattern documented by the American Petroleum Institute reflects the combination of two forces: active domestic refining demand—especially for gasoline, whose reserves rose by 3.5 million barrels in the same week—and restricted import supply due to logistical disruptions around the Strait of Hormuz, which affect the global flow of crude from the Persian Gulf.
Distillate stocks additionally fell by 214,000 barrels during the week. The increase in gasoline, though seemingly contradictory, reflects that refineries are processing crude at a good pace—confirming active demand for crude oil—while the final product accumulates due to retail demand that has not yet absorbed all production.
Bullish Signal: American Petroleum Institute Points to Tight Supply
The American Petroleum Institute data comes with Brent trading around $97.68 and WTI near $95.75, levels that already incorporate a substantial geopolitical premium due to uncertainty over Hormuz. The inventory draw reinforces the narrative of tight supply from the fundamental side, adding another argument for prices to hold or climb towards $100 per barrel if negotiations between the U.S. and Iran do not progress.
Energy Intelligence warned on June 2 that “if the Strait of Hormuz does not reopen for maritime traffic before early August, gas and LNG prices could skyrocket,” pointing to the July-August threshold as a critical point for energy markets. The American Petroleum Institute’s weekly data is the first available indicator; official data from the Energy Information Administration (EIA) is released every Wednesday and usually confirms—albeit with differences—the trend indicated by the API.
Context: EIA Projects Average Brent at $96 in 2026
The EIA revised its forecast for the average annual Brent price to $96 per barrel in its April short-term outlook report, more than 20% above its estimate prior to the Hormuz conflict. Goldman Sachs, for its part, estimated production losses in the Middle East at 14.5 million barrels per day as the main driver of the global inventory decline cycle that the American Petroleum Institute documents week by week.
The continuous decline for seven consecutive weeks is a market signal difficult to ignore. It indicates that, at current price levels, demand exceeds available domestic supply, making any positive news regarding Hormuz the most relevant catalyst for a downward correction in the short term.
Weekly updates on crude inventories and their impact on the global oil market can be followed in the Inspenet Oil and Gas hub. The analysis of the U.S. energy balance and its effects on the global market is addressed in the Inspenet Energy hub.
Sources: Reuters – API shows US crude inventories fell for seventh straight week | Energy Intelligence – World Gas Intelligence
