US Energy Reserves Grow as Global Supply Tensions Push Prices Higher

The EIA data places total commercial inventories at 411.7 million barrels, a figure that remains 6% below the rolling five-year seasonal average. This government report follows figures from the American Petroleum Institute, which had estimated a larger build of 2.6 million barrels. Alongside crude, motor gasoline inventories grew by 800,000 barrels, while middle distillate stocks saw a 1.4 million barrel increase, leaving the latter 10% below the five-year average.

Energy markets responded to the supply data with volatility, heavily influenced by the lack of progress on a diplomatic resolution regarding shipping lanes through the Strait of Hormuz. By mid-morning in New York, Brent crude climbed $2.33 to reach $93.34 per barrel, marking a $9 increase over the previous week. West Texas Intermediate followed a similar trajectory, gaining $1.97 to trade at $86.31. While production levels remain robust—with gasoline output averaging 9.7 million barrels daily—overall demand indicators suggest a cooling trend. Total product supplied, a primary metric for domestic oil consumption, averaged 20.4 million barrels per day over the last four weeks, reflecting a 1% decline compared to the same period last year.