Stockpiles of U.S. crude fell to a 2021 low last week after production eased and demand for petroleum products continued to climb – another in a string of indicators pointing to a tightening oil market.

Domestic commercial crude inventories in the week ended June 18, excluding those in the Strategic Petroleum Reserve, decreased by 7.6 million bbl from the previous week, the U.S. Energy Information Administration (EIA) said Wednesday. At 459.1 million bbl, stocks were 6% below the five-year average.

Production last week declined by 100,000 bbl and averaged 11.1 million b/d, EIA’s Weekly Petroleum Status Report showed. It held close to the 2021 high of 11.2 million b/d, but remained far below the 2020 peak of 13.1 million b/d reached in March. U.S. shale drillers are under...