US commercial crude oil stockpiles rose unexpectedly last week, defying market expectations for a drawdown and adding a fresh data point to an already volatile pricing picture.
US commercial crude oil stockpiles rose unexpectedly last week, defying market expectations for a drawdown and adding a fresh data point to an already volatile pricing picture.
Figures published by the US Energy Information Administration (EIA) on Wednesday showed crude inventories climbing by 3.0 million barrels in the week ending 3 July, lifting total commercial holdings to 411.4 million barrels. Despite the build, stockpiles remain around 6% under the five-year seasonal average. The result contrasted with industry data from the American Petroleum Institute released the previous day, which had pointed to a modest draw of roughly 399,000 barrels.
Refined product trends moved in the opposite direction. Motor gasoline inventories fell by 1.9 million barrels, following a build the week before, with average daily gasoline output easing to 9.7 million barrels. Middle distillate stocks dropped more sharply, down 5.0 million barrels, leaving distillate inventories about 12% below their five-year average, while production slipped to an average of 5.2 million barrels per day.
On the demand side, total products supplied — a widely watched gauge of US consumption — averaged 20.6 million barrels per day over the trailing four weeks, up 0.3% year on year. Gasoline demand held at 9.0 million barrels per day, while distillate supplied averaged 3.8 million barrels per day, easing 0.9% against the same period a year earlier.
The inventory release landed against a backdrop of renewed geopolitical tension. Prices firmed in early New York trading after US President Donald Trump declared the ceasefire with Iran over, following reported Iranian attacks on tankers in the Strait of Hormuz. Brent was quoted around $77.37 per barrel and West Texas Intermediate near $73.41, both up more than 4% on the day and sharply higher week on week.
For Malaysian and Southeast Asian maritime and oil and gas operators, the developments carry immediate relevance. The Strait of Hormuz remains a critical artery for crude bound for Asian buyers, and any disruption there reverberates through regional freight rates, tanker demand and cargo insurance costs. Rising benchmark prices could bolster upstream activity and support offshore service demand, while heightened security risks near key chokepoints underline the need for vigilance across the region's shipping and supply chains.
This brief was written by the MarineCraft News Desk from the source’s reporting. Read the original coverage at the source.
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