Oil Gains Nearly 2% Despite a Sharp Rise in US Inventories
Date: November 12, 2026
Market Overview
On November 12, 2026, oil prices experienced a notable increase of nearly 2%, despite the release of data indicating a significant rise in US crude oil inventories. The price of West Texas Intermediate (WTI) crude oil (OIL.WTI) rose by approximately 1.5%, while Brent crude (OIL) saw an increase of around 2%. This price movement occurred amidst renewed geopolitical uncertainties surrounding the US-Iran deal.
Inventory Data Highlights
The Energy Information Administration (EIA) reported that crude oil inventories rose by 4.657 million barrels, contrasting sharply with market expectations of a decline of 1.483 million barrels. This was a significant deviation from the previous week's drop of 0.865 million barrels.
Additional inventory data revealed:
- Gasoline inventories increased by 1.799 million barrels, against an expected decline of 0.35 million barrels.
- Distillate inventories rose by 4.071 million barrels, while a decrease of 2.0 million barrels was anticipated.
- Crude inventories at Cushing saw a slight increase of 0.106 million barrels, compared to a previous build of 0.280 million barrels.
Market Implications
The EIA's inventory data is viewed as negative for the oil price outlook, as the unexpected builds across major inventory categories suggest either weaker end-demand or greater supply than previously anticipated. Analysts believe that unless these bearish signals are countered by stronger export demand or renewed geopolitical tensions, the report could exert downward pressure on oil prices.
However, the immediate market reaction has not reflected this bearish sentiment, with oil futures showing gains. The ongoing geopolitical uncertainties, particularly regarding the US-Iran deal, appear to be providing some support to oil prices despite the negative inventory data.