Crude Oil Surges $2.70 Despite Surprise 2.01M Inventory Build

Crude oil prices remain elevated at $87.07, up $2.70 on the day, despite a surprise build in U.S. crude oil inventories of 2.010 million barrels versus expectations for a draw of 1.052 million barrels. Gasoline inventories also surprised to the upside, rising 0.765 million barrels against an expected draw of 1.57 million, while distillate stockpiles climbed 1.395 million barrels versus the 0.738 million estimate. The bearish inventory data was partially anticipated after API private data released the previous night showed a surprise crude build of 2.603 million barrels and a distillate build of 1.75 million barrels. Despite the inventory overshoot, crude oil prices have held firm, supported by heightened geopolitical risk stemming from escalating U.S.-Iran tensions. The resilience in oil prices despite bearish supply data suggests that geopolitical risk premiums are currently dominating market sentiment. Forex traders should monitor CAD and commodity-linked currency pairs, as sustained oil strength could provide tailwinds for the Canadian dollar.