USD/CAD: Massive US Crude Oil Inventory Build of +6.9M vs +477K Expected

The EIA reported a substantial US crude oil inventory build of +6.926 million barrels, far exceeding the +477K expected and following last week's +6.156 million barrel increase. This marks a significant oversupply signal for the oil market. Gasoline inventories declined by -2.593 million barrels (vs -2.143M expected), while distillates rose by +3.032 million barrels against an expected draw of -1.292M. Refinery utilization increased by +1.5%, well above the +0.4% forecast, suggesting refineries are ramping up operations. The API data released the prior evening had signaled a more modest +2.3 million barrel crude build. Despite the bearish headline numbers, market commentary suggests this report carries limited weight for oil prices amid broader macro concerns dominating sentiment. For USD/CAD traders, persistently weak crude prices could pressure the Canadian dollar, as Canada's economy remains heavily tied to energy exports. Key levels to watch on USD/CAD include whether the pair can sustain upward momentum on continued oil weakness, with traders monitoring geopolitical developments for additional direction.