Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

U.S. Oil Hits 2018 Highs Before Sliding on Mammoth Gasoline, Diesel Build 

CommoditiesJun 09, 2021 03:58PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

(Adds Brent settlement, comment on OPEC+)

By Barani Krishnan - U.S. oil prices hit their highest since 2018 before sliding on Wednesday as the government reported a mammoth weekly build in gasoline and diesel stockpiles amid a ramp-up in output by refiners anticipating runaway demand for fuels this summer.

West Texas Intermediate crude, the benchmark for U.S. oil, settled down 9 cents, or 0.1%, at $69.96 per barrel after racing earlier to $70.63, its highest since October 2018. WTI has gained 5.6% since the start of June.

Brent crude, which acts as the global benchmark for oil, settled flat at $72.12. Brent hit $72.85 earlier in the session, its highest since May 2019. It has gained 4% since the start of June.

Gasoline inventories rose by 7.05 million barrels during the week ended June 4, the Energy Information Administration said in its Weekly Petroleum Status Report. Analysts tracked by had forecast a build of just 1.2 million barrels.

Stockpiles of distillates, which include diesel and heating oil, rose by 4.4 million barrels against expectations for a 1.8 million barrel rise.

Crude stockpiles fell sharply too, by 5.2 million barrels versus forecasts for a 3.5 million-barrel decline. But that was only because of the ramp up in fuel production due to a spike in refining activity.

The EIA said refinery runs rose by 2.6 percentage points to 91.3% last week, the first time they had run above the key 90% threshold for months. Clearing that bar was somewhat a vindication for oil bulls betting on upcoming demand for fuels in the summer months.

Analysts have projected one of the biggest ever summer demand periods for fuel in the U.S. as the economy reopens fully from a year of lockdowns and safety measures imposed after the March 2020 outbreak of the coronavirus pandemic.

“Refineries are running flat out to build inventories ahead of summer driving season,” economist Adam Button said in a post on ForexLive. “There is already talk of heavy traffic on the roads.”

Sophie Griffiths, head of UK and EMEA research for online broker OANDA, said WTI and Brent appeared poised for more gains in the coming weeks after OPEC+’s apparent success in getting the market to accept a hike in production through July. 

U.S. Secretary of State Antony Blinken also provided more support to the market by saying hundreds of Treasury Department sanctions were expected to remain on Iranian oil even if Tehran managed to strike a new nuclear deal with world powers to legitimately put its crude exports back on the world market. 

The oil rally had been somewhat held back in recent weeks by concerns that Iran could put some 2 million additional barrels on the market in the course of the next few months. 

“The ducks have lined up nicely for the oil market right now,” Griffiths said. “With no OPEC meeting due until early July, (WTI) oil could well target $72 in the coming weeks.”

U.S. Oil Hits 2018 Highs Before Sliding on Mammoth Gasoline, Diesel Build 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Philip Trahadias
Philip Trahadias Jun 09, 2021 3:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email