Crude oil futures turned down, with U.S. oil and Brent oil both down more than 1%, hitting daily lows of $84.20/barrel and $87.05/barrel, respectively, as the drop in U.S. stocks cooled market risk sentiment, U.S. crude oil inventories grew moderately, and the president of the United States Biden pledged to try to curb higher oil prices.

U.S. domestic crude inventories rose last week for the first time in eight weeks, according to a report from the U.S. Energy Information Administration; U.S. demand remains strong despite a mixed outlook for overall inventory data. The total supply of refined oil products hit the highest level for the same period in at least 30 years.

Quinn Kiley, a portfolio manager at Tortoise, said we may see some price shocks in the short term, but by the second half of this year or early 2023 we will see supply keep up with demand growth and the market will be more balanced.

White House economic adviser Brian Deese said the U.S. will work to speed up the release of oil from the strategic reserve. But Biden's options to curb the rise in oil prices are limited and may not last. The recent surge in crude oil prices poses a challenge to consumer countries and central banks as they try to curb inflation while supporting economic growth.

Ole Hansen, head of commodity strategy at Saxo Bank, said underlying fundamentals remain strong, as the IEA confirms in its monthly report, but technical indicators are signaling overbought and oil prices could soon find themselves in a period of consolidation.

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