WTI Slides After Biggest Crude Build Since January
Oil prices are down this morning as signs of a large gain in US crude stockpiles undermined comments by the United Arab Emirates and Saudi Arabia about tight market conditions.
In the US, API reported overnight that crude inventories rose 7.1 million barrels last week. That would be the largest increase since January if confirmed by government data due later on Wednesday.
The expected inventory gain threw some cold water on UAE Energy Minister Suhail Al Mazrouei’s comments that a lack of major inventory buildups shows the market needs the production that OPEC+ is reviving, while Saudi Aramco sees healthy global demand despite trade challenges and tariffs.
API
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Crude +7.1mm
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Cushing +100k
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Gasoline -2.2mm
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Distillates -800k
DOE
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Crude +7.07mm – biggest build since Jan
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Cushing +464k
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Gasoline -2.66mm
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Distillates -825k
The official data confirmed API’s big crude build while products saw inventories drawdown…
Source: Bloomberg
With the 238k addition to SPR, total crude stocks rose by the most since January last week…
Source: Bloomberg
US crude production remains just off record highs, even as the US rig count plunges…
Source: Bloomberg
WTI Crude is well off the highs of the day now…
Source: Bloomberg
“Current market conditions are reasonably tight,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S.
“But I’m still somewhat concerned a surplus will grow into the autumn months as demand slows.”
In another headwind, Israel foreign minister Gideon Sa’ar says a ceasefire in the nearly two-year conflict in Gaza, as well as a hostage deal, is “achievable,” according to the AFP.
Tyler Durden
Wed, 07/09/2025 – 10:37
