Last week’s U.S. EIA crude oil inventory change (thousands of barrels) as of 0731 fell short of expectations: 247.9 vs -150.6

U.S. EIA crude inventories unexpectedly surged by 2.479 million barrels, far exceeding expectations. The buildup suggests weak demand or oversupply, potentially constraining rate cut expectations.

Last week, the U.S. EIA reported a change in crude oil inventories of 2.479 million barrels, far exceeding the expected decline of 1.506 million barrels and the previous figure of 7.167 million barrels. The unexpected sharp increase in inventories suggests weak energy demand or an oversupply, which could dampen expectations of inflation cooling and thus limit the room for monetary easing policies.