Crude Oil Inventories Surprise with Large Build Despite Expectations
The US Energy Information Administration (EIA) released its weekly crude oil inventories report for the week ending August 7. The data showed a significant increase in crude oil stocks, with a build of +17.423K barrels against an expected drawdown of -1405K barrels.
This is not the first time this month that crude oil inventories have been higher than expected. Just last week, API reported a build of +9072K barrels, while EIA showed a more modest increase of +2479K barrels. For gasoline and distillates, the numbers were also mixed, with draws in both categories but smaller than anticipated.
Meanwhile, US President Donald Trump took to social media to boast about the country's control over the Strait of Hormuz and its naval blockade, calling it a 'Wall of Steel'. He claimed that Iran has no navy, air force, or paid soldiers, and is on the brink of collapse due to economic woes.
The price of WTI crude oil was affected by these developments, falling 40 cents to $82.81 per barrel. The US dollar also moved lower in response to the CPI data, which came in as expected at 3.4% y/y.