The U.S. Energy Information Administration (EIA) reported a surprising increase in commercial crude oil inventories, rising by 1,925K barrels, contrary to market expectations of a 1,200K barrel draw. This data sharply contrasts with the American Petroleum Institute’s (API) report, which indicated a substantial draw of 4.4 million barrels. While the crude inventory build is bearish, draws in gasoline and distillates—4,570K and 3,427K barrels, respectively—point to resilient U.S. fuel demand despite high prices and geopolitical tensions.

Despite the bearish crude headline, WTI Crude prices remained stable, hovering just below $92 per barrel, with resistance around $94. The market is currently balancing strong domestic demand against the backdrop of shifting geopolitical dynamics, particularly the potential resumption of diplomatic talks with Iran, which could impact the geopolitical risk premium.

Market professionals should note that while crude inventories are up, the significant draws in refined products suggest ongoing demand strength, which could influence pricing strategies moving forward.

Source: xtb.com