Oil Prices Rally on Supply Data Despite Rising U.S. Inventories
WTI and Brent crude gain over 1.4% as market focuses on product draws, while Bakken differential holds steady.
Oil prices posted strong gains in midday trading Wednesday, August 19, shrugging off a reported build in U.S. crude stockpiles to focus on tightening refined product supplies. West Texas Intermediate (WTI) crude was trading at $85.38 per barrel, up $1.32 or 1.57%, according to live price data. Brent crude traded at $92.34, also up $1.32 for a 1.45% gain.
The price advance occurred despite new U.S. Energy Information Administration (EIA) data showing a significant weekly increase in crude inventories. Commercial crude stockpiles rose by 4.4 million barrels for the week ending August 14, bringing total inventories to 428.8 million barrels, according to OilPrice.com. That figure puts stockpiles at about the five-year average for this time of year.
Market support appeared to come from the products side of the report. The EIA data showed distillate inventories, which include diesel and heating oil, decreased by 1.5 million barrels last week and are now 13% below the five-year average. Gasoline inventories rose by 700,000 barrels. Total product supplied, a proxy for demand, averaged 20.5 million barrels per day over the last four weeks, down 2.9% year-over-year.
For Bakken producers, the North Dakota crude price is closely tied to the WTI benchmark. The live data showed the Bakken differential at -$3.42 per barrel versus WTI. This means Bakken crude at the Clearbrook, Minnesota, pricing point is trading at approximately $81.96 per barrel. The steady differential amid the broader rally suggests regional pipeline and rail takeaway capacity is sufficient for current production levels.
In natural gas markets, the Henry Hub spot price was trading at $2.83, up $0.05 on the day. However, the EIA has lowered its price forecast, according to Rigzone. The agency's new Short-Term Energy Outlook projects the Henry Hub spot price will average $3.44 per million British thermal units (MMBtu) for all of 2026, a downward revision from its previous estimate.
The midday price strength marks a continuation of a weekly uptrend. OilPrice.com noted that WTI was up almost $3 per barrel from the same time last week, with Brent showing a similar gain. The price resilience in the face of rising crude inventories suggests traders are weighing the total supply picture, including the tighter distillate market and ongoing geopolitical factors, more heavily than a single weekly stock build.
Source
Live price data, OilPrice.com, Rigzone
