WTI moves below $80.00 due to a surprise build in US crude stockpiles

• WTI price loses ground as a surprise build on US crude stockpiles raised concerns about weakening demand.
• US EIA Crude Oil Stocks Change increased by 3.591 million barrels in the previous week, against an expected decline of 3.000 million barrels.
• US crude Oil imports reached 3.1 million barrels per day in May, the highest since July 2022.

West Texas Intermediate (WTI) crude Oil price edges lower to near $80.30 during the Asian session on Thursday, retreating further from a two-month high of $81.65. Crude Oil prices received pressure after a surprise build in US crude stockpiles raised concerns about weakening demand in the world’s top Oil consumer.

On Wednesday, US Energy Information Administration data showed that US Crude Oil Stocks Change increased by 3.591 million barrels in the week ending June 21, defying market expectations for a 3.000 million-barrel decline.

Ongoing geopolitical tensions in the Middle East and Ukraine could further fuel the prices of the Oil prices. Israeli Prime Minister Benjamin Netanyahu has stated that the most “intense” phase of the attack against Hamas in Gaza is nearing its end, according to CNN. Meanwhile, Russia has condemned the US for a "barbaric" strike in Crimea, which utilized US-provided missiles, resulting in the deaths of at least four people, including children, and injuring 151 others, per NBC News.

However, last month, US crude Oil imports surged to their highest level in nearly two years, driven by refiners acquiring heavy crudes from Canada and Latin America to produce fuels for the summer driving season. In May, US crude Oil imports reached 3.1 million barrels per day (bpd), the highest since July 2022, according to ship tracking service Kpler. So far this month, imports have remained robust, averaging around 2.9 million bpd, as reported by Reuters.