Oil prices hold near one-and-a-half-week highs despite a 17.422 million-barrel US inventory surge, the largest since January 2023.
West Texas Intermediate crude remains near $82.20 per barrel, supported by Middle East supply risks despite a sharp rise in US inventories. The Energy Information Administration reported a 17.422 million-barrel increase for the week ending August 7, exceeding expectations of a 1.4 million-barrel drawdown and marking the largest weekly build since January 2023.
Prior to the report, crude stocks had risen by 2.479 million barrels the previous week. The unexpected inventory surge contrasts with ongoing geopolitical tensions, particularly around the Strait of Hormuz, where US forces recently intercepted a cargo ship attempting to breach a naval blockade.
The International Energy Agency revised its global oil supply and demand forecasts downward, projecting a 4.3 million barrel-per-day supply decline by 2026 and a 1.6 million barrel-per-day demand contraction, the latter 510,000 barrels steeper than previously estimated.