US crude oil inventories climbed 4.405 million barrels in the week ending August 14, blowing past the 0.200 million-barrel increase analysts had forecast, though the build slowed sharply from the previous week's 17.423 million-barrel jump. Saudi crude imports into the US collapsed 91% as Middle East shipping disruptions forced tankers to change course, while WTI held in a tight range following this month's swings on US-Iran tensions.
Crude build far exceeds forecasts
US commercial crude stockpiles rose to 428.8 million barrels in the week ending August 14, according to data the Energy Information Administration released Wednesday. That is now roughly in line with the five-year average for this time of year. The actual increase of 4.405 million barrels topped the forecast of 0.200 million barrels by a wide margin. It still landed far below the prior week's 17.423 million-barrel build, pointing to a slower pace of accumulation even as US supply stays loose relative to demand.
Saudi imports collapse as Hormuz risk grows
The most striking shift in the report was the 91% drop in US imports of Saudi crude, a decline tied to severe disruption on Middle East shipping routes. Threats to Saudi shipments through the Red Sea and the conflict around the Strait of Hormuz have already forced Saudi tankers to change course. Canada remains by far the largest source of US crude imports, with Canadian barrels accounting for roughly two-thirds of the total.
Product stocks tell a mixed story
Gasoline inventories rose 688,000 barrels, well short of the expected 1.504 million-barrel draw, while distillate stocks fell 1.530 million barrels, only slightly more than the 982,000-barrel draw analysts expected. Distillate inventories now sit 13% below the five-year average, even after production of middle distillates slipped to an average of 5.2 million barrels a day. Total products supplied, a proxy for US oil demand, averaged 20.5 million barrels a day over the past four weeks, down 2.9% from the same period last year.
WTI crude has traded in a tight range since Monday's spike after Trump cast doubt on a US-Iran deal. The market has ground higher since the selloff triggered by Treasury Secretary Bessent's August 4 comment that a deal with Iran was imminent, and it has almost erased the entire drop that followed Trump's decision to call off planned strikes on Iran on August 3.
At the headline level, the inventory data is bearish, though oil prices are mainly driven by global growth expectations, OPEC decisions and geopolitical events rather than the weekly stock report itself.
Sources: Investinglive.com, Oilprice.com
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