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In a remarkable development, U.S. crude stockpiles experienced a historic drop of 17.05 million barrels last week, indicating a significant tightening in the global oil market following output cuts by OPEC.

According to U.S. government data, American inventories are now at their lowest level since January, signaling positive news for oil bulls who have been anticipating tighter market conditions for some time. The surge in crude futures above $80 a barrel can be attributed to the recent implementation of production limits by Saudi Arabia and a decline in exports from Russia.

It’s worth noting that the weekly inventory figures from the U.S. Energy Information Administration are subject to frequent revisions, which have led to some skepticism about the accuracy of the data. Nonetheless, the substantial drop in U.S. crude stockpiles underscores the impact of OPEC’s efforts to balance the oil market and stabilize prices.