Oil prices head for highest close in over a week as US crude supplies fall for sixth week

Oil futures are on track to settle Wednesday at their highest levels in more than a week, after the Energy Information Administration reported a sixth straight weekly decline in U.S. commercial crude inventories and another substantial draw from the nation's Strategic Petroleum Reserve.

For energy commodity traders, the sustained inventory draws signal tightening physical supply, particularly as the market continues to assess the impact of the ongoing closure of the Strait of Hormuz. The EIA data showed commercial crude stocks fell by 3.2 million barrels last week, while the SPR declined by 4.5 million barrels, underscoring the pace at which global supply buffers are being eroded. With refineries running at elevated utilization rates to meet summer demand, the combination of falling inventories and geopolitical risk has pushed the Brent-WTI spread wider, reflecting a premium for seaborne barrels. Traders can monitor the latest fuel prices on NowPrice for real-time updates on market movements.

Looking ahead, the market will focus on next week's EIA report for further confirmation of the drawdown trend, as well as any developments regarding the Hormuz situation. OPEC+ production decisions and the potential for further SPR releases remain key variables. The backwardation structure in the futures curve suggests near-term tightness, but traders should watch for any signs of demand destruction at current price levels.