WTI Surges on Surprising Inventory Build Despite Ongoing Shortage

The latest Crude Oil inventory report from the Energy Information Agency (EIA) shows a massive build-up of 17.4 million barrels, the largest since January 2023. This comes as West Texas Intermediate (WTI) trades near $80.50, down from an overnight peak of $82.00.

The build is attributed to exports slumping while imports rose by 1.14 million barrels a day, with most of the accumulation taking place on the Gulf Coast rather than spread across the system. This creates a logistical issue rather than a shortage, as refineries ran at 96.2% of operable capacity and inputs edged higher.

Despite this, the International Energy Agency (IEA) expects Crude Oil demand to contract by 1.6 million barrels a day across 2026, while OPEC trimmed its growth estimate for the same year by 600K barrels a day from 780K. Both agencies describe demand being destroyed by price and a shut waterway rather than a soft economy.