US crude oil inventories posted an unexpected build of 2.603 million barrels in the week ending July 17, compared with market expectations for a 1.5 million-barrel draw, after a 564,000-barrel decline in the previous week.
Despite the increase, commercial crude inventories excluding the Strategic Petroleum Reserve (SPR) have fallen by more than 57 million barrels over the past 13 weeks and remain about 7 million barrels lower year-to-date.
At the same time, the SPR declined by another 5.1 million barrels to 316.5 million, the lowest in more than 43 years and roughly 420 million barrels below its maximum capacity.
Cushing inventories fell by 737,000 barrels and gasoline stockpiles decreased by 1.379 million barrels, while distillate inventories rose by 1.759 million barrels.
US crude production edged up to 13.861 million barrels per day, as oil prices remained supported by renewed US-Iran tensions and continued shipping disruptions through the Strait of Hormuz.