U.S. Crude Inventories Surge by 11.4 Million Barrels, Far Exceeding Forecasts

The American Petroleum Institute (API) reported a massive and unexpected surge of 11.4 million barrels in U.S. crude oil stockpiles for the week ending February 20. This actual build significantly outperformed analyst expectations, which had forecasted a much smaller increase of only 1.85 million barrels. The substantial rise in inventories suggests a potential supply glut or weakening demand within the U.S. market, contrasting sharply with the previous week's minor draw. Additionally, the Department of Energy noted that Strategic Petroleum Reserve (SPR) inventories continue to climb on a weekly basis. Market participants are now closely watching for official figures from the Energy Information Administration (EIA) to confirm these bearish trends. This data has immediately put downward pressure on oil prices, impacting major benchmarks such as WTI and Brent.