WTI Oil Prices Fail to Reclaim $70 After EIA Inventory Buildup

Crude Oil has been bullish this week, however buyers have failed to reach the $70 level as EIA crude Inventory shows a buildup, indicating that the downtrend will likely resume again soon, with fundamentals also pointing down for Oil.

The recent $2 surge in crude oil prices on Monday was driven by several factors: the escalation of the Ukraine conflict following a long-range missile strike on Russia, temporarily suspended by the Biden administration; disruptions at Norway’s Johan Sverdrup oilfield; and ongoing geopolitical tensions in the Middle East.

US Crude Oil Chart Daily – The Series Of Lower Highs Continues

Despite this, WTI crude remains in a consolidation phase, hovering below $70. Attempts to push prices above this key level have failed, leading to a pullback. With Equinor partially resuming production at the Johan Sverdrup oilfield—Western Europe’s largest—and a slight easing of Middle East tensions, the geopolitical risk premium in oil prices appears to be fading. As crude continues to form lower highs, this could signal a strategic opportunity to consider a sell position in the market.

Weekly EIA Inventory Report:

• Crude Oil Inventories:

  • Build of 0.545M (higher than the estimated build of 0.138M).
  • Previous week saw a larger build of +2.089M.

• Gasoline Inventories:

  • Build of 2.054M (well above the forecasted build of 0.859M).
  • Prior week recorded a sharp drawdown of -4.407M.

• Distillate Inventories:

  • Drawdown of -0.114M (slightly exceeding the anticipated drawdown of -0.020M).
  • Previous week showed a larger drawdown of -1.394M.

• Cushing Inventories:

  • Drawdown of -0.140M (less than last week’s drawdown of -0.688M).

Private API Inventory Data (Reported Yesterday):

• Crude Oil Inventories:
  • Significant build of 4.753M.
• Gasoline Inventories:
  • Drawdown of -2.480M.
• Distillate Inventories:
  • Drawdown of -0.688M.
• Cushing Inventories:
  • Drawdown of -0.288M.

US WTI Crude Oil Live Chart