Key Moments
- ICE Brent traded above $92/bbl and NYMEX WTI moved past $86/bbl as crude extended its rally for a fifth straight session.
- U.S. commercial crude inventories rose by 4.4 million barrels to 428.8 million barrels, the third weekly increase and the highest level since May.
- Refinery utilization climbed to 97.2%, while distillate inventories dropped by 1.5 million barrels to 105.6 million barrels amid tighter supply.
Sanctions Risk Drives Fifth Day of Oil Price Gains
ING strategists Ewa Manthey and Warren Patterson reported that crude prices extended their upswing for a fifth consecutive session, with ICE Brent trading above $92 and WTI exceeding $86 as traders reacted to expectations of tougher U.S. sanctions on Iran.
“Oil extended its rally for a fifth consecutive day after US President Donald Trump announced measures to intensify economic pressure on Iran. ICE Brent climbed above $92/bbl, while NYMEX WTI traded above $86/bbl on Thursday morning, supported by concerns over tighter sanctions enforcement. Trump also warned of tougher economic penalties for entities supporting Iranian economic activities, signalling a further escalation in US efforts to isolate Iran.”
Inventory Data Show Largest Commercial Crude Stock Level Since May
Alongside the price rally, the latest U.S. inventory figures revealed a notable build in commercial crude stocks, even as overall crude holdings edged lower when including strategic reserves.
“The EIA’s latest weekly inventory report showed US commercial crude oil inventories increased by 4.4 million barrels to 428.8 million barrels, marking a third consecutive weekly build and the highest level since May. This contrasted sharply with API’s reported 328,000 barrel draw and market expectations for a 74,000 barrel decline. Meanwhile, the Strategic Petroleum Reserve fell by 5.3 million barrels, leaving total US crude oil inventories down by a modest 0.9 million barrels.”
| Category | Change | Result / Level | Comment |
|---|---|---|---|
| ICE Brent | – | Above $92/bbl | Fifth consecutive session of gains |
| NYMEX WTI | – | Above $86/bbl | Supported by sanctions concerns |
| U.S. commercial crude inventories | +4.4 million barrels | 428.8 million barrels | Third weekly build; highest since May |
| Strategic Petroleum Reserve | -5.3 million barrels | – | Total U.S. crude stocks down 0.9 million barrels |
| Gasoline inventories | +0.69 million barrels | 209.4 million barrels | Product stocks mixed |
| Distillate inventories | -1.5 million barrels | 105.6 million barrels | Driven by lower imports and output |
Trade Flows, Refinery Activity, and Product Stocks
Manthey and Patterson underscored that the build in commercial crude inventories occurred even as exports strengthened and imports declined, pointing to increased domestic supply as the key driver.
“The commercial stock build was driven by higher domestic supply despite strong export demand and lower imports. Crude exports rose by 1.01 million barrels per day week-on-week to 4.07 million barrels per day, while imports fell by 746,000 barrels per day to 6.59 million barrels per day. Refinery activity remained robust, with crude throughput increasing by 216,000 barrels per day and utilisation rates rising to 97.2%, close to seasonal highs.”
“Strong refining margins continue to incentivise refiners to maximise run rates.”
Mixed Picture Across Refined Products
Refined product inventories moved in different directions, with gasoline stocks rising and distillate holdings tightening.
“Refined product inventories showed a mixed picture. Gasoline stocks increased by 0.69 million barrels to 209.4 million barrels, while distillate inventories fell by 1.5 million barrels to 105.6 million barrels. The decline in distillate stocks was driven by lower imports and reduced domestic production, tightening supply in the US market.”
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