U.S. Oil Inventories Fall 9.8 Million Barrels as Prices Recover From Two-Month Low
Key Facts
Oil prices recovered in Asian trading on Wednesday, November 11, from a two-month low after American Petroleum Institute data showed U.S. inventories fell 9.8 million barrels in the week ended November 6, against expectations for a decline of 1.0 million barrels. Reuters coverage said the larger-than-expected draw helped spur some gains in crude. At 20:38 U.S. Eastern Time, January Brent futures rose 0.5% to $92.02 a barrel. West Texas Intermediate futures gained 0.3% to $86.34. The recovery came as markets continued to watch for any signs of de-escalation in the U.S.-Iran war, a path that could affect traders’ assessment of supply risks.
The gains followed Tuesday’s session, when oil fell to a two-month low and extended its losses amid growing conviction that the Democratic-led U.S. Congress would pressure Washington to end the conflict with Iran. By contrast, coverage indicated that U.S. President Donald Trump had shown a preference for restraint toward Iran during the week and played down the need for further military strikes. Reuters quoted him as playing down the "need for more military strikes" against the country. The political signals available to traders were mixed: Iran denied earlier in the week that peace talks were underway. At the same time, Trump met with Qatari officials to discuss additional mediation, according to the coverage. These developments kept the course of the conflict and prospects for de-escalation among the factors the market was monitoring alongside inventory data.
Risks tied to shipping movements in the region remained in focus, with fighting between Saudi Arabia and Iran-backed Houthis continuing during the week. Coverage reported that 3 tankers were seen on fire in the Strait of Hormuz during the preceding weekend. But other data showed that oil and gas transits through the strait reached their highest level since the conflict began in February. This places the improvement in transit alongside security incidents that continue to draw attention to the passage. The coverage gave no figure for flow volumes or the extent of the change in supplies, but it noted that transits had reached their highest levels since the conflict began. Prices’ recovery thus coincided with the market tracking both energy flows through Hormuz and the surrounding military and political developments.
On the supply side, a separate Reuters survey showed OPEC output rose despite Middle East disruptions. That adds an indicator of the group’s production to a picture in which regional disruptions overlap with improved oil and gas transit through the Strait of Hormuz. The coverage did not specify the size of the production increase or the period measured, so the survey’s reported finding is limited to the direction of the change. OPEC’s monthly report, due November 11, is intended to analyze developments affecting oil market trends, including global demand and supply and the market balance. It is scheduled for the same Wednesday on which markets tracked price movements and U.S. inventory data. Its release gives traders a broader reading of the factors governing the global market balance, according to OPEC’s description of the report’s purpose.
The next update on inventories for the week ended November 6 will come from the U.S. Energy Information Administration. The report is scheduled for release on Thursday, November 12, at 12:00 p.m. U.S. Eastern Time, after its timing was changed because of the Veterans Day holiday. It covers the same week in which the American Petroleum Institute reported a draw of 9.8 million barrels. Market expectations for that week pointed to a decline of 1.0 million barrels, making the government’s inventory estimate one of the data releases to watch. The release timing does not change the timing of the institute’s data, which supported some gains in Wednesday trading, but puts a subsequent inventory update on the market’s calendar.
Monthly Energy Information Administration data provide broader context for the trajectory of U.S. and global inventories. The agency said U.S. commercial crude inventories fell 14.1 million barrels in October, driven by lower imports and higher exports. It also estimated that global inventories declined by an average of 1.2 million barrels a day in the third quarter of 2026, but projected that they would begin rising in the fourth quarter. At the OPEC+ level, 7 countries decided to keep December 2026 required production levels at September levels and set November 29 for their next meeting. This background places weekly U.S. inventory movements within broader trends involving global stocks and production decisions, as the market awaits the Energy Information Administration report on November 12 and OPEC’s report due November 11.