WTI Pressured as US Crude Stocks Surge 4.2M Barrels

US crude oil inventories jumped by 4.2 million barrels for the week ending August 21, according to API estimates, more than double the 1.9 million-barrel build economists had projected. The sharp reversal follows a 328,000-barrel draw the prior week, adding fresh downside pressure on WTI as traders reassess the pace of domestic demand.

The build is notable given the Strategic Petroleum Reserve continues to sink toward operational minimums. Commercial inventories excluding the SPR have actually lost over 45 million barrels across nineteen weeks, even as total US crude stocks are up 5.8 million barrels year-to-date, a gap kept in check largely through reserve drawdowns.

For WTI traders, this divergence between commercial builds and shrinking strategic reserves complicates the near-term supply narrative and could keep volatility elevated into the next EIA report.