US commercial crude oil inventories decreased by 6.1 million barrels to 412.1 mmbbls in the week ended June 19, the Energy Information Administration said in its weekly report on Wednesday.
Crude inventories are now about 7% below the five-year average for this time of year, the EIA said.
The decline exceeds Macquarie's forecast of a 1.9-mmbbl draw for the week ending June 19.
US natural gas futures remained under pressure on Tuesday as cooler weather forecasts and expectations of softer power-sector demand offset support from a recovery in LNG consumption.The front-month Henry Hub contract and the continuous contract both declined by 2.89% to $3.16 per million British thermal units.Geopolitical risk premiums continued to fade after the US moved to ease sanctions on Iran, while President Donald Trump said the Strait of Hormuz would remain open to shipping, easing concerns about potential disruptions to global energy flows.Commodity Weather Group forecasts now show below-average temperatures across parts of the Mid-Atlantic region from June 23-27, reducing expected cooling demand and weighing on natural gas prices.Aegis Hedging said Boardwalk Pipeline's 1.16 billion cubic feet per day Kosci Junction project could enter service ahead of schedule, connecting new gas supplies to Southeast demand centers.The firm also noted planned maintenance on pipelines serving Sabine Pass, Corpus Christi and Golden Pass LNG facilities in late June and July.NRG Energy said demand has risen into the low 100 Bcf/d range amid warmer temperatures, while production remains above demand, narrowing the market's supply surplus.Gas flows to LNG export terminals slipped to an estimated 19.1 billion cubic feet per day on Tuesday, down 1.4% from the prior week, leaving more supply available to the domestic market, according to BNEF.BNEF noted Lower 48 dry gas production was estimated at 111.5 Bcf/d on Tuesday, up 3% from a year earlier, while total gas demand was projected at 72.8 Bcf/d, down 10.1% year over year.Global gas prices remained supported after an explosion at Qatar's Ras Laffan industrial complex on Monday raised uncertainty over the restart of Persian Gulf gas production, while stronger Asian LNG demand increased competition for spot cargoes, according to Daniel Hynes, senior commodity strategist at ANZ Bank.
California moved to challenge a federal offshore wind buyout agreement that redirects $120 million and could delay the state's clean-energy plans, officials said Tuesday.Attorney General Rob Bonta and California Energy Commission Chair David Hochschild sent a Notice of Intent to Sue the US Department of the Interior and Golden State Wind, arguing that a lease-termination deal unlawfully threatens offshore wind development in California.Under the agreement, the Interior Department would pay Golden State Wind $120 million to surrender its offshore wind lease off California's Central Coast and require the company to invest an equivalent amount in out-of-state fossil-fuel projects, according to California officials.The state alleges the agreement violates the Outer Continental Shelf Lands Act by bypassing protections that give California a role in offshore wind leasing decisions. The notice gives the parties 60 days to address the alleged violations before litigation begins.Bonta said the Trump Administration is using taxpayer money to eliminate clean-energy projects, while California intends to defend investments that support jobs, economic growth, and renewable energy development.California's offshore wind strategy targets 25 gigawatts of capacity by 2045, enough to supply electricity to roughly 25 million homes and provide about 13% of the state's power needs, officials said.Golden State Wind paid $120 million in a competitive 2022 auction for rights to develop a 2-gigawatt project in the Morro Bay Wind Energy Area and committed more than $30 million for workforce training, supply-chain development, and community programs, according to the state.The Interior Department announced on April 27, 2026, that it would cancel the lease under a settlement agreement tied to litigation that California says Golden State Wind never filed and that federal agencies never faced.California said it has invested more than $100 million in ports, transmission planning, and related infrastructure to support offshore wind development and warned that those investments, along with union jobs and economic benefits, could be jeopardized if projects are abandoned.Separately, the California Energy Commission issued investigative subpoenas to Golden State Wind in May and to Invenergy on June 23. According to the Interior Department, Invenergy agreed to relinquish four offshore wind leases, including a 2-gigawatt Morro Bay project, in exchange for a $765 million federal payment and a matching investment in US natural gas and geothermal projects.California said offshore wind buyouts approved by the Trump Administration now total nearly $2.6 billion nationwide and pledged to review investigative findings to protect public investments and the state's clean-energy objectives.
Data from the American Petroleum Institute revealed Tuesday that US crude oil inventories dropped by 765,000 barrels in the week ended June 19, following an 8.33-million-barrel draw the previous week, according to a Bloomberg-compiled survey.The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.