US Crude Stocks Surge 7.14M Barrels as Cushing Draws Persist

API estimates show U.S. crude inventories jumped 7.14 million barrels in the week ending September 11, a sharp reversal from the prior week's 300,000-barrel draw. Despite the build, commercial stocks excluding the SPR have shed just over 41 million barrels across the last 22 weeks, with inventories up nearly 10 million barrels year-to-date only thanks to SPR releases.

Cushing, the key WTI delivery point, continues to see falling stocks even as headline inventories swing higher, a divergence that traders should watch closely for signs of tightening physical delivery conditions.

Layered on top of a newly formed 'Mecca Alliance' warning Iran over Houthi strikes on Saudi Arabia, the inventory picture points to a commodities market where headline data and underlying physical fundamentals are increasingly disconnected.