- WTI drops to a multi-week low below $65 on Tuesday on OPEC headlines.
- API reports a larger-than-expected draw in crude oil inventories.
- With a late recovery, WTI rises back above $65 in post-settlement trade.
Earlier in the day, crude oil prices remained under pressure with the barrel of West Texas Intermediate tumbling to its lowest level since early April at $64.22. Following the weekly API crude oil stock data, the barrel of WTI is now trading at $65.40.
Following his meeting with OPEC Secretary-General Mohammad Barkindo, Russian Energy Minister Alexander Novak stated that OPEC and Russia were sharing a common view on the current oil market situation and added that OPEC and non-OPEC countries should look into a possible easing of oil output restrictions depending on market demand.
Moreover, citing industry sources familiar with the matter, Reuters reported that the United States has unofficially asked Saudi Arabia and some other OPEC members to ramp up their oil output.
According to the weekly report published by the American Petroleum Institute, crude oil inventories in the United States decreased by 2 million barrels in the week ending June 1 to 432.8 million to surpass the market expectation of a 1.8 million barrels reduction. Further details of the report showed that refinery crude runs rose by 373,000 barrels per day while gasoline stocks increased by 3.8 million barrels.
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