API Reports Massive Crude Draw, Oil on Track for $90 by June

The American Petroleum Institute reported a 8.1 million barrel draw in U.S. crude inventories for the week ending May 1, far surpassing analyst estimates of a 2.8 million barrel decline. The drawdown comes as conflict around the Strait of Hormuz disrupts a critical oil transit chokepoint.

The Trump administration has responded by releasing 17.5 million barrels from the Strategic Petroleum Reserve to stabilize markets. Despite this, prediction markets now price a 100% probability of crude reaching $90 per barrel by the end of June.

Analysts say the supply constraints, combined with ongoing Middle East tensions, create a bullish environment for oil. Attention remains on OPEC+ production decisions and diplomatic efforts to reopen the Strait of Hormuz.