US crude inventories surged by 9.0 million barrels last week, while record domestic production of 14.003 million bpd and rising distillate stocks weighed on WTI and Brent prices.
The API estimated a 9.0 million barrel build in US crude inventories for the week ending November 6, a sharp swing from the 5.267 million barrel draw the week before, pointing to weakening demand or oversupply and weighing on WTI. Supporting supply pressure comes from record US production of 14.003 million bpd. WTI already traded down $0.48 (-0.55%) at $86.37, down roughly $11 per barrel from a week earlier.
The sharp 9.0 million barrel US crude build signals softening demand, a bearish backdrop for Brent, which traded down 0.66% at $91.96 and is down more than $12 per barrel from a week earlier. Brent's decline is amplified by Iran de-escalation hopes reducing the geopolitical premium, though Ukrainian strikes on Russian refining limit the downside.
The American Petroleum Institute reported a 9.0 million barrel build in US crude oil inventories for the week ending November 6, marking a sharp reversal from the previous week's 5.267 million barrel draw. This inventory surge, coupled with record US production of 14.003 million barrels per day, has pressured oil prices as markets weigh weakening demand signals.
The API estimated crude inventories rose sharply by 9.0 million barrels in the week ending November 6, a reversal from the prior week's 5.267 million barrel draw, signaling weaker demand or abundant supply, and US production hit a record 14.003 million bpd.
WTI traded at $86.37, down roughly $11 per barrel from this time last week.
Brent is priced globally, so a sharp 9.0 million barrel US crude build adds to the bearish supply-demand picture, though Brent moves are currently driven more by Iran war risk headlines.
Brent traded at $91.96, down more than $12 per barrel from this time last week, and briefly fell below $90 for the first time since August.