WASHINGTON (dpa-AFX) - The U.S. stockpiles of crude oil, gasoline and diesel are rapidly declining due to strong demand and global supply disruptions caused by the Middle East war, according to the latest federal data.
The amount of crude oil and energy products in commercial and emergency storage further dwindled by 17.4 million barrels last week, U.S. Energy Information Administration weekly petroleum status reports say.
Commercial crude oil stocks decreased to around 445 million barrels, says the EIA report that was released on Thursday.
Gasoline stockpiles have plummeted to their lowest May level in more than a decade, while diesel is currently at its lowest level since 2003.
These are ideal conditions to trigger consumer price rise, reports say.
The amount of crude in the Strategic Reserves dropped sharply by another 9.1 million barrels to roughly 365 million barrels last week, as the Trump administration continues to release large volumes from SPR.
U.S. crude exports have reportedly surged to all-time high.
President Donald Trump has linked the rising U.S. gas prices directly to the military conflict with Iran and the resulting blockade of the Strait of Hormuz. While gas prices have surged to an average of $4.43 per gallon, Trump has maintained that the higher costs at the pump are a temporary and necessary trade-off to neutralize Iran's nuclear capabilities.
He has repeatedly assured Americans that gasoline and oil prices will drop rapidly and return to normal as soon as the Iran conflict ends. According to him, there is an abundance of oil supply waiting to hit the market when Middle East peace is restored.
There are reports that the United States and Iran are close to a deal that would extend their ceasefire to another 60 days, during which, the two sides will negotiate on sticking points such as Iran's nuclear program.
Reports quoting U.S. officials say that as per the deal, the Strait of Hormuz will be cleared of mines and open for unhindered traffic.
Vice President JD Vance said there is progress in peace talks but whether President Trump signs a tentative memorandum of understanding with Iran is yet to be decided.
'I think it's hard to say exactly when or if the president is going to sign the MOU. We're going back and forth on a couple of language points,' Vance told reporters at Joint Base Andrews on Thursday.
'Hopefully, we'll continue to make progress, the president will be in a position where he can endorse the agreement, but obviously that's still TBD,' he added.
As the peace deal prospects brightened, crude oil prices slid on Friday.
Brent crude oil fell to $91 per barrel, while the US-traded WTI is trading around $87 per barrel.
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