US weekly crude oil stocks reported by the API fell by 0.609 million barrels for the week ending 13 February.
The previous week saw a rise of 13.4 million barrels.
Reversal In Inventory Signal
The latest API data shows a crude draw of 0.609 million barrels, reversing last week’s large 13.4 million-barrel build. The prior build pointed to an oversupplied market. This week’s unexpected draw suggests the market may be tighter than expected in the near term, which can support prices.
The draw also matches recent weather impacts. A polar vortex in the Northeast likely lifted demand for heating oil, an important distillate product. At the same time, U.S. refinery utilization has increased to 86.2% in early February as plants come out of seasonal maintenance. As refineries run more, they buy more crude to prepare for expected spring driving-season demand.
This level of weekly volatility is similar to what we saw in late 2024. Back then, mixed signals from China’s economic data and OPEC+ production discipline led to sharp price moves. The key point is that one weekly figure does not make a trend, so confirmation from the official EIA report will matter.
Mixed signals are also pushing implied volatility higher. The oil VIX (OVX) is now near 38, its highest level this year. In this kind of market, options strategies such as call spreads can be appealing because they offer upside exposure with defined risk. We are positioning in April WTI contracts to see how these supply and demand factors develop over the next month.
Risk Positioning Ahead
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