Oil Futures Surge Despite Build in U.S. Crude Inventories


   
Maria Eugenia Garcia
DTN Energy Editor

   HOUSTON, TX (DTN)-- Oil futures climbed Thursday (11/12), despite federal 
data showed a weekly build of U.S. commercial crude oil inventories in the week 
ended November 6. Prices remained supported by escalating tensions between the 
United States and Iran, as continued exchange of threats diminishes prospects 
of a diplomatic resolution. 

   U.S. commercial crude oil inventories rose by 4.7 million bbl to 414.4 
million bbl last week, ending five consecutive weekly declines, according to 
Energy Information Administration (EIA) data released Thursday.

   Despite the build, inventories remained 13.2 million bbl, or 3.1%, below the 
427.6 million bbl reported during the comparable week of 2025.

   Meanwhile, distillate fuel inventories rose by 4.1 million bbl to 103.3 
million bbl, reversing the 3.6 million bbl draw that had pushed supplies to 
their lowest level since May 2003. Stocks remained 7.6 million bbl below the 
110.9 million bbl recorded during the corresponding week of 2025, while 
distillate imports declined by 18,000 bpd to 99,000 bpd.

   Gasoline inventories also increased by 1.8 million bbl to 210.8 million bbl, 
leaving supplies 5.7 million bbl above the 205.1 million bbl reported a year 
ago. Gasoline imports fell by 149,000 bpd to 202,000 bpd.

   In contrast, U.S. Strategic Petroleum Reserve (SPR) inventories posted their 
largest weekly decline since late August during the week ended November 6, 
pushing emergency crude stocks to their lowest level since October 1982, 
according to EIA data.   

   However, developments surrounding the Middle East conflict remained a key 
focus for oil markets, as the prospect for a near-term ceasefire appear 
increasingly remote. 

   U.S. President Donald Trump on Thursday said that he asked Vice President JD 
Vance, who was recently leading the diplomatic efforts, to instead focus on 
domestic policy, adding that "We don't need a deal with Iran."

   The remarks fueled uncertainty around the conflict, now in its ninth month, 
and directly contradicted recent statements by senior U.S. officials engaged in 
diplomatic efforts to end the war and reopen the Strait of Hormuz.

   Meanwhile, media reports noted that a senior Iranian military spokesman 
warned that any further U.S. attack would trigger a response "10 times" more 
severe. 

   The NYMEX WTI futures contract for December delivery rose by $2.40 to $88.93 
bbl, while the front-month ICE Brent futures contract increased by $3.35 to 
$96.11 bbl. Downstream, NYMEX ULSD for December delivery advanced $0.0885 to 
$4.2998 gallon, while front-month RBOB futures rose $0.0667 to $2.6742 gallon.

    

   The US dollar index increased 0.275 points to 103.095 against a basket of 
foreign currencies.




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