U.S. crude oil inventories surged by 6.93 million barrels last week, significantly exceeding expectations of a 0.5 million barrel increase and up from the previous week’s 6.16 million barrel rise. While gasoline stocks saw a notable drawdown of 2.59 million barrels, slightly above the anticipated decline, distillate inventories unexpectedly increased by 3.03 million barrels, reflecting seasonal shifts as heating demand wanes. This mixed inventory data comes amid rising refinery utilization, indicating robust gasoline demand.

Despite these figures, oil prices have remained relatively stable, with WTI crude finding support around $88 per barrel. Market dynamics are heavily influenced by ongoing geopolitical tensions in the Middle East, particularly following Iran’s rejection of peace terms, which could sustain upward pressure on commodity prices.

For market professionals, the key takeaway is that while inventory levels present a complex picture, geopolitical factors are likely to overshadow supply data in the near term, impacting trading strategies and price forecasts.

Source: xtb.com