U.S. crude oil inventories rose by 4.20 million barrels in the week ended Aug. 23, the American Petroleum Institute (API) reported on Tuesday, sharply exceeding expectations for a 1.90 million-barrel increase and reversing the prior week’s 0.328 million-barrel drawdown.
The unexpected build underscores a shift in market dynamics, with stockpiles expanding despite forecasts pointing to a more modest accumulation. The Energy Information Administration (EIA) is scheduled to release its official figures on Wednesday, providing further clarity on the inventory trend.
Crude prices retreated following the API data, with West Texas Intermediate (WTI) futures falling 1.37 dollars, or 1.66%, to 80.99 dollars per barrel. The decline reflects investor reaction to the surprise build, which contrasts with recent market expectations of tighter supply conditions.
The prior week’s API report had indicated a decline of 0.328 million barrels, highlighting the volatility in weekly inventory movements. Analysts had anticipated a modest increase of 1.90 million barrels for the latest period, underscoring the magnitude of the deviation from consensus projections.
