According to the EIA data, US crude stockpiles last week jumped by nearly 10 million barrels to 470.6 million barrels, to their highest since September 2017. Meanwhile, production hit a record high of 12.3 million barrels per day. The numbers are fueling fears that stockpiles will continue to rise in the coming weeks as the US refineries are preparing for the traditional maintenance period.
On the other hand, further decline in exports from Iran and Venezuela as well as the rising prospects of extending production cuts by OPEC+ in June will likely cap the selling pressure in the market. Brent slipped below the $72 handle but still holds above the $71 support. A break below this level could worsen the short-term technical outlook in the market while the broader remains intact.