U.S. crude oil inventories rose by 4.2 million barrels last week, the American Petroleum Institute (API) reported, sharply exceeding the 1.9 million-barrel increase forecast by analysts and reversing a 0.328 million-barrel draw in the prior period.
The unexpected surge underscores a marked softening in domestic demand, with supply outpacing consumption and exerting bearish pressure on oil prices. The API’s weekly inventory data, a key barometer of U.S. petroleum consumption, has historically influenced market sentiment and prompted reassessment of short-term trading strategies.
Market participants now await the Energy Information Administration’s (EIA) official report, due later this week, for further confirmation of the trend. A sustained build in inventories would reinforce expectations of weaker crude demand and could extend the recent downward pressure on oil benchmarks, which have already retraced from multi-week highs amid concerns over global demand growth.
