NEW YORK — U.S. crude oil inventories climbed 17.4 million barrels last week, the largest increase since January 2023, defying expectations for a 1.4 million barrel draw and pulling West Texas Intermediate crude below $83 per barrel.
The build was driven by a sharp rise in imports. Net imports reached their highest level since June 2025, with more than one million barrels per day entering the country. Increased shipments from Venezuela and a return of Saudi Arabian crude accounted for the bulk of the surge, reversing a stretch when U.S. exports had been running at elevated levels.
At the same time, U.S. crude exports fell to their lowest level since November 2025, compounding the domestic stock build.
Domestic production also rose, nearing record highs as the U.S. rig count continues to climb, adding further supply into the system.
Refinery runs increased, reaching their highest seasonal level since 2019. Fuel makers said they intend to maintain higher-than-usual operating rates through the third quarter, a period when plants typically undergo maintenance.
Stocks at the Cushing, Oklahoma, storage hub — the delivery point for WTI futures contracts — also posted a build, extending their recovery from recent lows.
Product inventories moved in the opposite direction, posting draws for the second consecutive week. Gasoline stocks fell 968,000 barrels and distillate inventories declined 10,000 barrels.
U.S. gasoline demand held up, slipping just 0.4 percent — 36,000 barrels per day — from a year earlier, even as retail prices averaged more than $4 per gallon, a 29 percent increase from the same period last year, according to the American Automobile Association.
Drawdowns from the Strategic Petroleum Reserve accelerated last week, with 6.1 million barrels removed. The SPR now holds less than 300 million barrels, its lowest level since January 1983. A total of 117 million barrels have been released from the reserve since late March, part of a 172 million barrel program coordinated by the International Energy Agency to lower energy costs.
The inventory data arrives as OPEC again cut its forecast for global oil-demand growth this year. Geopolitical risks persist, with stalled talks to reopen the Strait of Hormuz, ongoing Red Sea disruptions, Houthi attacks on Saudi Aramco's Jazan complex and refinery incidents in Russia and Libya.
