U.S. commercial crude oil inventories rose sharply by 17.4 million barrels during the week ending August 7, according to data released Wednesday by the U.S. Energy Information Administration (EIA). The build lifted total commercial stockpiles to 424.4 million barrels, placing them just 2% below the five-year seasonal average. Weekly crude inventory swings of this magnitude are uncommon and tend to draw close market scrutiny, as they can reflect a combination of factors including import levels, refinery throughput changes, and adjustments to supply chains.

The EIA figures followed a report from the American Petroleum Institute (API) released a day earlier, which had indicated a crude inventory build of 9.072 million barrels for the same period. The sizable gap between the two estimates underscored the uncertainty surrounding weekly supply data, with the EIA's government figures typically treated as the benchmark by traders and analysts.

Crude futures eased in early morning trading following two consecutive sessions of gains. As of 9:51 a.m. in New York, Brent crude was trading at $88.52 per barrel, down $0.39 (-0.44%) on the day, though still up approximately $9 per barrel compared to the same time the previous week. West Texas Intermediate (WTI) also moved modestly lower, declining $0.44 per barrel (-0.53%) to $82.76, representing a gain of $7.50 per barrel from the prior week's levels. The muted price reaction suggested that broader market drivers — including OPEC+ supply policy and geopolitical risk premia — continued to exert a stronger influence on sentiment than the weekly inventory snapshot alone.

On the products side, the EIA reported that total motor gasoline inventories declined by 1.0 million barrels, following a drawdown of 1.6 million barrels the previous week. Average daily gasoline production decreased to 9.6 million barrels. Middle distillate inventories fell by 100,000 barrels, while production rose to an average of 5.3 million barrels per day. Distillate stockpiles remain 12% below the five-year average, a deficit that has persisted as a focal point for market participants monitoring heating fuel availability ahead of the winter season.

Total products supplied, a widely used proxy for U.S. oil demand, averaged 20.7 million barrels per day over the trailing four-week period, representing a 2.1% decline compared to the same period a year earlier. Gasoline demand over the past four weeks averaged 9.0 million barrels per day. The four-week average for distillate supply came in at 3.7 million barrels per day, up 1.9% year over year. The softening in overall products supplied comes during what is typically the peak summer driving period, a seasonal window when gasoline consumption normally reaches its annual high point.

Source: OilPrice.com