WTI Crude Prices Slump Following Largest US Inventory Build in Three Years
Key Facts
- •The US Department of Energy (DOE) reported a massive crude build of 15.99 million barrels, the largest since February 2023.
- •The American Petroleum Institute (API) previously reported an 11.4 million barrel build for the last week.
- •A Hezbollah official stated the group will not intervene in the event of limited US strikes on Iran, easing the geopolitical risk premium.
- •The US deployed 12 F-22 stealth fighter jets to Israel as part of the largest military build-up in the region since 2003.
WTI crude oil prices extended their decline after official government data confirmed a massive oversupply in the US market. The US Department of Energy (DOE) reported a staggering crude inventory build of 15.99 million barrels, marking the largest increase since February 2023. This official data surpassed the earlier report from the American Petroleum Institute (API), which had estimated a build of 11.4 million barrels. Market sentiment was further dampened as geopolitical risk premiums eased following comments from Hezbollah regarding limited intervention in potential US-Iran conflicts. Despite the significant US military buildup in the Middle East, including the deployment of F-22 stealth fighters, traders are prioritizing bearish supply fundamentals. The combination of record-breaking inventory growth and cooling escalation fears continues to weigh heavily on global oil benchmarks.
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