Oil Softens as Product Builds Offset U.S. Crude Inventory Draw

Oil prices eased despite a notable drawdown in U.S. crude stockpiles, as traders focused on sizable builds in refined products that could signal softer end-user demand. The latest U.S. Energy Information Administration data showed a 3.8 million-barrel decline in commercial crude inventories, excluding the Strategic Petroleum Reserve, bringing total stocks to 419.1 million barrels, about 3% below the five-year seasonal average. The market reaction saw both U.S. benchmark Oil – US Crude and global benchmark Oil – Brent Crude trade weaker, as the sharp builds in gasoline and distillate inventories pointed to potential demand headwinds. U.S. Natural Gas was also in focus as refined product balances and weather expectations continue to influence broader energy complex sentiment.

Over the past month, price action has reflected growing concerns about demand and ample supply, with Oil – US Crude down about 4.15% and Oil – Brent Crude lower by roughly 3.83%, consolidating after earlier gains tied to geopolitical risks and OPEC+ policy expectations. The short-term technical backdrop remains cautious, with Oil – US Crude flashing a Strong Sell signal on the one-day timeframe, while Oil – Brent Crude is similarly rated Strong Sell, suggesting downside momentum is still dominant. Natural Gas has been notably weaker, falling about 23.69% over the last month amid comfortable storage levels and moderate weather patterns, and currently carries a one-day Sell signal, underscoring persistent bearish sentiment in the near term. Investors can explore more updates, prices, and analysis across global markets at Commodities.