US crude inventories surge 17.4 million barrels in unexpected rise
Weekly data shows a sharp increase in U.S. crude stocks, defying analyst expectations and pressuring oil prices.
U.S. crude oil inventories rose by 17.4 million barrels last week, the Energy Information Administration reported on Wednesday, exceeding forecasts and sending prices lower.
The unexpected build contrasts with analyst projections for a modest drawdown of around 2.5 million barrels, according to a Reuters poll. The increase marks the largest weekly gain since March 2023 and follows a period of relative stability in domestic stockpiles.
Crude prices fell after the data release, with West Texas Intermediate (WTI) and Brent crude both declining by roughly 1% in early trading. The drop reflects concerns over rising supply amid tepid demand signals, particularly in the U.S. and China.
Analysts attributed the surge to a combination of factors, including higher refinery runs and potential adjustments in import volumes. The EIA’s report also showed gasoline inventories edged up by 1.6 million barrels, while distillate stocks declined slightly.
The data underscores the volatility in oil markets, where supply-side shocks and demand uncertainties frequently drive price action. Traders will monitor upcoming OPEC+ policy meetings and geopolitical developments for further direction.
Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.
More from Sophie Laurent →