U.S. crude stocks rose by 424.4 million barrels, defying forecasts for a 1.4 million barrel draw, pressuring WTI prices near $80.50.
West Texas Intermediate fell sharply after U.S. crude inventories posted their largest weekly build in over three years, dropping from $82.00 to near $79.50 in a $2.50 selloff. The increase to 424.4 million barrels contradicted expectations for a 1.4 million barrel draw, despite agencies earlier flagging physical supply shortages.
The build stemmed from a surge in imports, up 1.14 million barrels per day to 7.3 million, while exports slumped. Refineries operated at 96.2% capacity, indicating demand remained strong. Most of the stockpile accumulated on the Gulf Coast, suggesting logistical bottlenecks rather than oversupply.
Gasoline and distillate inventories declined, reinforcing the bottleneck narrative. Gasoline stocks fell to 208.7 million barrels, 6% below the five-year average, while distillates slipped to 107.1 million.