US Oil Stocks Surge Amid Global Energy Disruptions
The US oil market is experiencing an unusual surge in stock levels as global energy flows are disrupted by escalating tensions between the US and Iran.
According to preliminary data from the American Petroleum Institute (API), crude oil inventories increased by 7.1 million barrels in the week ended September 11, while gasoline stocks rose by 1.5 million barrels and distillates gained 1.6 million barrels.
The build-up in US stocks comes as global oil markets face a significant supply shock, with oil prices climbing above $100 a barrel amid disruptions to Middle East shipping routes. The Strait of Hormuz, which normally handles around 20% of global crude and LNG flows, has seen only four commodity vessels cross the waterway on Monday, compared to an average of about 125 daily transits.
Saudi Arabia's East-West oil pipeline has also been disrupted, adding pressure to alternative export routes. However, higher US inventories do not necessarily mean that the global oil market is adequately supplied, as international supplies remain constrained by shipping bottlenecks and reduced exports from the Middle East.