U.S. crude inventories fell by 11.5 million barrels last week, the biggest decline in nearly a year. The Gulf Coast, a strategically important region for U.S. oil exports, accounted for the bulk of the drop in inventories. There, oil storage volumes dropped to their lowest levels since December last year.
Analysts cite the key factors for the reduction in reserves as an increase in demand from refineries, an increase in activity against the background of the beginning of the summer auto season, a decrease in import volumes and high rates of raw material exports. These trends reflect the traditional seasonal dynamics of demand, as well as the general briskness of foreign trade in energy resources.
At the same time, the attention of world markets is focused on the growing geopolitical tensions in the Middle East. The escalating conflict between Israel and Iran is fueling concerns about a possible disruption of supplies through the Strait of Hormuz. This strategic route provides transportation of a significant part of the world's oil volumes. If it is blocked or exports are curtailed by Iran, one of OPEC's largest producers, energy markets may face a new round of price volatility.
