U.S. commercial crude oil inventories rose by 17.4 million barrels to 424.4 million in the week ended August 7, defying analyst expectations for a modest draw. The unexpected build, the largest in weeks, was driven by a surge in imports from Canada and Venezuela alongside a drop in exports to 3.06 million barrels per day, the lowest since 2025. Gasoline stocks fell by roughly 1 million barrels, while distillate inventories edged lower.
Oil prices declined Thursday on the inventory data and a dimming global demand picture. Brent crude fell 1.7% to $87.44 a barrel, and WTI dropped 1.9% to $81.66. OPEC cut its 2026 world oil demand growth forecast to 580,000 barrels per day, and the International Energy Agency projected global supply would trail demand by 1.27 million bpd through year-end.
Geopolitical tensions persisted as President Donald Trump claimed U.S. "total control" of the Strait of Hormuz, while vessel crossings fell to a three-week low. Meanwhile, U.S. strategic petroleum reserve stocks fell to their lowest level in over four decades, declining 6.1 million barrels to 298.7 million.