WTI holds near one-month lows as EIA inventory build weighs on sentiment

• WTI holds near one-month lows as traders digest EIA inventory build.
• US crude stocks rise 2.774M barrels, reversing the prior week’s draw.
• Softer US Dollar and revived Fed rate-cut bets offer limited support to prices.

West Texas Intermediate (WTI) Crude Oil trades little changed on Wednesday, hovering near one-month lows as traders show a muted reaction to the latest US Energy Information Administration (EIA) report. At the time of writing, WTI is trading around $58.00 per barrel, with ongoing oversupply concerns keeping sentiment subdued.

The EIA data highlighted a softer demand backdrop after US crude inventories rose by 2.774 million barrels, reversing the prior week’s 3.426-million-barrel draw and pointing to a renewed build in commercial stockpiles. The increase came despite a pickup in refinery runs and higher utilization rates, with the report showing the rise was driven mainly by a sharp jump in crude imports alongside a notable decline in exports.

Gasoline and distillate inventories also expanded over the week, signalling weaker fuel consumption and adding to concerns that the market remains amply supplied.

Elsewhere, markets are also closely watching developments around the ongoing Ukraine-Russia peace discussions, with traders assessing whether progress toward a negotiated framework could eventually ease restrictions on Russian crude flows. Any resolution that boosts supply into global markets would risk adding further pressure to an already oversupplied environment.

Meanwhile, the broader softness in the US Dollar amid revived interest rate cut expectations is helping cushion the downside in WTI, with markets increasingly pricing the possibility that the Federal Reserve (Fed) could lower rates in December. A weaker Greenback makes crude cheaper for overseas buyers, offering short-term support to prices.