United States API Weekly Crude Oil Stock below forecasts (-3.6M) in May 29: Actual (-6.75M)

💡 DMK Insight

Crude oil stocks just dropped more than expected, and here’s why that matters: The API report showing a decline of 6.75 million barrels against a forecast of 3.6 million is a significant indicator of tightening supply. This could lead to upward pressure on oil prices, especially if the trend continues into the EIA’s report later this week. Traders should be on the lookout for how this impacts WTI and Brent crude prices, as a sustained drop could push WTI above key resistance levels. If we see a breakout above recent highs, it might trigger bullish momentum. But don’t ignore the flip side—if demand doesn’t pick up or if geopolitical tensions ease, we could see a quick reversal. Keep an eye on the broader economic indicators, like U.S. inventory levels and OPEC’s production decisions, as they could influence market sentiment. Watch for any price movements around $80 for WTI, as this level could act as a psychological barrier for traders in the short term.