US commercial crude inventories jumped 17.4 million barrels last week, the largest weekly gain since January 2023, as exports fell to their lowest level since the Iran war began and imports surged.
MONTREAL (Oil Monster): US crude stocks excluding barrels in the Strategic Petroleum Reserve posted a surprise build and made their largest weekly gain since January 2023 last week as exports slumped, the Energy Information Administration said on Wednesday.
Crude inventories rose by 17.4 million barrels to 424.4 million barrels in the week ended August 7, their highest level since June 5, the EIA said, compared with analysts' expectations in a Reuters poll for a 1.4 million-barrel draw.
"Ongoing weakness in crude exports has combined with a massive jump in imports to drive the second largest crude inventory build in history — with the vast majority of the build happening on the Gulf Coast," said Matt Smith, commodity research director at Kpler. Crude stocks along the US Gulf Coast rose by their most in a week since January 2023.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.6 million barrels.
US and Brent crude futures initially extended losses after the report showed the large, surprise build in stocks but were trading flat on the day by 11:32 a.m. EDT.
US crude exports fell last week to their lowest level since November 2025 at 3.06 million bpd, also marking their lowest point since the start of the Iran war, in which the US has stepped up as a key global supplier to fill supply gaps left by a shortage of Middle Eastern barrels.
"This week's report shows a big oil inventory build, which looks anomalous. Exports were unusually low and imports were high. This would be bearish for oil if more builds appear in future reports, but seems more likely to be a one-off," said Josh Young, chief investment officer at Bison Interests.
Net US crude imports rose by 1.77 million bpd, EIA said, their highest since June 2025, with imports from Canada and Venezuela hitting multi-month highs.
"Today's numbers are very noisy because of tankers unloading in the US, but they don't alter the challenging fundamental picture. The SPR continues to shrink and gasoline was drawn down. Markets will likely look past this report and keep focusing on headlines out of the Middle East," said David Russell, Global Head of Market Strategy at TradeStation.
Refinery crude runs rose by 26,000 barrels per day in the week, the EIA said. Refinery utilization rates fell by 0.3 percentage points to 96.2%.
US gasoline stocks fell by 1 million barrels in the week to 208.7 million barrels, the EIA said, compared with analysts' expectations in a Reuters poll for a 1.2 million-barrel draw. US gasoline futures extended their losses and were down 0.63% after the data showed a smaller-than-expected stock draw in gasoline stocks.
Distillate stockpiles, which include diesel and heating oil, fell by 10,000 barrels in the week to 107.1 million barrels, versus expectations for a 1.3 million-barrel drop, the EIA data showed. US diesel futures reversed losses after the data and rose 0.54%, despite the smaller-than-expected diesel stock draw.
Total product supplied, a proxy for demand, fell by 335,000 bpd to 20.64 million bpd. With futures trading flat despite the surprise build, analysts including Young and Russell say markets are treating the report as noisy rather than a clear signal of a bearish turn, keeping focus on Middle East supply headlines rather than the inventory data itself.
Courtesy: www.reuters.com
US crude stocks rose 17.4 million barrels to 424.4 million barrels in the week ended August 7, the largest weekly gain since January 2023.
Exports dropped to 3.06 million bpd, the lowest level since November 2025, marking the weakest point since the Iran war began.
The vast majority of the build was on the Gulf Coast, where stocks rose by the most in a week since January 2023.
US and Brent futures initially extended losses but were trading flat by 11:32 a.m. EDT.
Gasoline stocks fell 1 million barrels and distillate stocks fell 10,000 barrels, both smaller draws than analysts expected.
