US Oil Stockpiles Surge, Market Immediately Wary
US oil stocks surprised the market in the week ending January 16, 2026. Crude oil inventories rose by 3.602 million barrels, far above market expectations of a rise of only around 1.1 million barrels. This surge immediately reinforced signals that US supplies were tight.
Pressure was further exacerbated by stocks at Cushing, Oklahoma—a key distribution hub for WTI—also surging by 1.478 million barrels, the largest increase since August 2025. Rising stocks at Cushing are usually considered an "alarm bell" for WTI prices, as they signal a growing supply glut at a crucial point.
Not just crude, finished product stocks also surged. Gasoline rose by 5.977 million barrels, far above the forecast of +1.7 million barrels. This is usually interpreted by the market as a sign that consumer demand is not yet strong enough or that refinery supply is still abundant.
The most "unexpected" draw came from distillates. Distillate (diesel and heating oil) stocks actually rose by 3.348 million barrels, even though the market expected a decrease of 0.2 million barrels. If distillate also rises, the market often assesses that industrial/logistics demand is not as strong as the optimistic narrative.
Market conclusion: Data like this tends to be bearish for oil in the short term, because the three main lines—crude, gasoline, and distillate—are all showing significant increases. Typically, the market will wait for further confirmation (a trend of several weeks) before making a major change, but for a quick reaction, these figures clearly add to the burden on prices.
Source: Newsmaker.id
