API Shocker Sends Ripples Through Oil, Dollar, and Stocks

Markets jolted late Tuesday after the American Petroleum Institute reported a sharp 13.4 million-barrel build in US crude inventories for the week ending February 6, a dramatic reversal from the previous 11.1 million-barrel draw. The surprise stockpile increase immediately shifted sentiment across energy markets, reviving concerns about excess supply just as traders had been positioning for tighter conditions.


WTI and Brent React as Momentum Falters

Oil prices trimmed earlier gains following the data. West Texas Intermediate, which had been trading about 1 percent higher earlier in the session, lost momentum as the inventory shock hit. Brent crude, up nearly 0.9 percent before the release, also eased as traders reassessed the balance between supply growth and demand expectations. The API figures reinforced fears that US production remains resilient despite ongoing geopolitical risks.


Trump’s Rate-Cut Push Meets Energy Reality

The oil market reaction unfolded against a broader macro backdrop shaped by US President Donald Trump’s renewed calls for aggressive interest rate cuts. Trump argued that lower rates could eliminate the US debt burden, a view that initially supported risk assets. However, the unexpectedly large crude build tempered optimism, reminding investors that growth-friendly policy alone may not offset supply-side pressures in energy markets.


Dollar Steady, Stocks Cautious After Data Clash

The US dollar traded mixed as markets weighed political pressure for easier policy against persistent economic uncertainty. Equities held modest gains but lost some upside momentum, with investors reluctant to extend positions after the API surprise. Energy stocks, in particular, faced renewed pressure as oil prices struggled to hold earlier advances.


All Eyes Shift to Official Inventory Confirmation


Attention now turns to whether official US inventory data will confirm the API’s outsized build. Until then, oil prices are likely to remain volatile, while the dollar and equities continue to react to the tug-of-war between rate-cut expectations and hard supply data. The API release has firmly reset the short-term narrative, placing crude inventories back at the center of global market focus.


Brent and WTI Performance After the API Report


WTI crude pared earlier gains after the API release, shifting from an advance of about +1.0% earlier in the session to trading flat to slightly lower as the 13.4 million-barrel build revived supply concerns. Brent crude followed a similar path, easing from roughly +0.9% gains to a modest pullback, underperforming earlier intraday highs as traders reassessed the supply-demand balance.
In short, both benchmarks lost upside momentum following the API surprise, with price action turning cautious as markets awaited confirmation from official inventory data.