WTI Oil Prices Unfazed by Record Inventory Build

A massive inventory build of American Crude Oil has led to a market that is both physically short and drowning in barrels. According to data from Mitrade, US Crude Oil stocks rose by 17.4 million barrels, the largest weekly build since January 2023. This increase brings the total commercial stock to 424.4 million barrels, still around 2% below the five-year average.

The build is largely due to a traffic jam on the Gulf Coast, where exports slumped while imports rose by 1.14 million barrels a day. Refineries are running at 96.2% of operable capacity, and inputs have edged higher, indicating that Americans are consuming more oil, not less.

The International Energy Agency (IEA) now expects Crude Oil demand to contract by 1.6 million barrels a day across 2026, a decline from the previous estimate. The Organization of the Petroleum Exporting Countries (OPEC) has also trimmed its 2026 growth estimate to roughly 600K barrels a day from 780K.

The war in the Middle East continues to affect oil supplies, with the Strait of Hormuz seeing only eight vessels transit on Tuesday, a one-week low. The market is waiting for the expiration of the 60-day negotiating window on August 17, which could lead to further price movements.