Crude Oil Storage Report - June 2

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Oil prices rallied on Thursday after the U.S. Energy Information Administration (EIA) said commercial crude oil inventories decreased by 1.4 million barrels for the week ending on May 27.

Total motor gasoline inventories decreased by 1.5 million barrels for the week, while distillate fuel inventories declined by 1.3 million barrels.

Last weekend's Memorial Day holiday marked the official start of the summer driving season.

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Overnight Reuters reported that seven tankers of exported WTI (3.85 million barrels), including four (2 million barrels) chartered by BP, remain stuck at sea off Curacao terminal due to lack of payment from Venezuela state oil company PDVSA. The crude is part of a tender awarded in March for diluents used in blending up Venezuelan heavy crude production to exportable grades. PDVSA has unsuccessfully offered to swap Venezuelan crude for the WTI in lieu of payment. This is more evidence that the fiscal meltdown in Caracas could have a more significant impact on Venezuelan exports sooner rather than later.