US crude stocks fall, OPEC+ to meet June 22 on output
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US crude inventories fell by 3.2 million barrels last week, according to the Energy Information Administration, exceeding analyst expectations of a 1.5 million barrel draw. The decline pushed Brent crude above $82 per barrel on Friday. OPEC+ is scheduled to meet on June 22 to discuss production levels for the third quarter.
Inventory Drawdown
US crude inventories fell by 3.2 million barrels to 437.4 million barrels in the week ending June 7, the EIA reported on Wednesday. The draw was driven by higher refinery utilization, which rose to 95.1% of capacity. Gasoline stocks also declined by 2.1 million barrels, signaling strong summer demand.
Price Reaction
Brent crude futures rose 1.8% to $82.35 per barrel on Friday, while West Texas Intermediate settled at $78.12. The gains were supported by the inventory data and expectations of tighter supply from OPEC+. Analysts at Goldman Sachs noted that the market remains in deficit of about 500,000 barrels per day in the second quarter.
Impact on Kazakhstan
Kazakhstan, a key OPEC+ member, produced 1.56 million barrels per day in May, slightly above its quota of 1.55 million bpd. The country's budget relies on oil revenues, with Brent averaging $80 per barrel in 2026. A potential OPEC+ output cut could limit Kazakhstan's production growth, while higher prices would boost export earnings.
UAE OPEC+ Exit
The United Arab Emirates officially left OPEC+, a move that historically precedes oil price collapses. In 1986 and 2020, oil crashed more than 60% after major fractures within producer alliances.
What's Next
OPEC+ ministers will convene on June 22 to decide on output targets for August and beyond. It remains unclear whether the group will extend existing cuts or adjust quotas to accommodate rising demand from China and India.
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US crude stocks fall, OPEC+ to meet June 22 on output
