EIA reports unexpected crude inventory build in US

The US Energy Information Administration (EIA) reported an unexpected 7.1-million-barrel increase in domestic crude oil inventories, pushing total stocks to 426 million barrels for the week ending July 4. This surge came as a surprise to market analysts, who had forecast a 2.1-million-barrel draw, according to a Reuters poll.

The EIA report also revealed a 464,000-barrel build at the Cushing, Oklahoma storage hub.

This inventory growth came alongside significant movements across energy markets, with gasoline inventories in the US falling by 2.7 million barrels to 229.5 million barrels as pre-holiday demand surged. 

On Wednesday, Brent crude prices dropped to $69.61 per barrel and WTI fell to $67.69 per barrel.

Completing the mixed picture, the EIA reported a substantial 1.36 million barrel per day reduction in net crude oil imports to the United States.