However, the overall fuel inventory expansion was offset by a sharp drawdown in refined product stocks. Most notably, distillate fuel inventories declined by 2.8 million barrels, leaving levels 6% below the five-year average.
Crude remains on track for a quarterly loss, pressured by an escalating global trade war that threatens demand. Meanwhile, OPEC and its allies are set to increase production in April, further weighing on market sentiment.
The market remains on edge as the United States expands its military presence in the Middle East, reaffirming its commitment to continued strikes on Houthi targets in response to ongoing attacks on commercial vessels in the Red Sea.