US Crude Draw Fails to Lift Oil as Technicals Remain Bearish

U.S. crude inventories declined unexpectedly last week even as gasoline and distillate stocks increased, according to the latest Energy Information Administration data. Crude stocks fell by 3.8 million barrels to 419.1 million barrels for the week ended January 2, defying consensus forecasts for a modest build and suggesting firmer immediate demand or export strength for Oil – US Crude. The product builds point to robust refinery runs and potentially softer end-user consumption, a mix that can pressure margins and temper bullish sentiment for global benchmarks such as Oil – Brent Crude, while also influencing expectations for future demand for Natural Gas in refining and heating markets.

Despite the supportive surprise in crude draws, price action over the past month has been negative across the complex: Oil – US Crude is down about 4.15% and Brent Crude has slipped roughly 3.83%, reflecting persistent concerns over macroeconomic growth, OPEC+ supply dynamics, and product demand trends. Natural Gas has been notably weaker, losing about 23.69% over the same period, consistent with ample storage levels and muted weather-driven consumption. Short-term technicals remain cautious: the 1-day signals indicate a Strong Sell bias for US crude, a Strong Sell for Brent, and a Sell stance for natural gas, underscoring ongoing downside pressure despite the latest inventory surprise. Investors can explore more updates, prices, and analysis across global markets at Commodities.