US crude oil inventories unexpectedly increased by 2.603 million barrels in the week ending July 17, defying market expectations for a 1.5 million-barrel draw and following a 564,000-barrel decline in the previous week. Despite this weekly build, commercial crude stocks excluding the Strategic Petroleum Reserve (SPR) have declined by more than 57 million barrels over the past 13 weeks and remain roughly 7 million barrels lower since the start of the year.
Meanwhile, the SPR fell by an additional 5.1 million barrels to 316.5 million, its lowest level in over 43 years and around 420 million barrels below maximum capacity. At Cushing, Oklahoma, inventories decreased by 737,000 barrels, gasoline stocks dropped by 1.379 million barrels, and distillate inventories rose by 1.759 million barrels.
US crude oil output inched up to 13.861 million barrels per day, with oil prices supported by renewed tensions between the US and Iran and ongoing shipping disruptions in the Strait of Hormuz.