US weekly crude oil stocks, based on API data, fell to 3.719 million in the week ending 3 April. This was down from 10.263 million in the previous week.
The change represents a decrease of 6.544 million week on week. The figures refer to crude oil stock levels in the United States.
The latest API report shows a crude oil inventory build of 3.719 million barrels for the week ending April 3rd. While this is still an increase, it is significantly smaller than the massive 10.263 million barrel build we saw the previous week. This sharp deceleration in inventory growth is a potentially bullish signal, suggesting that the recent supply glut could be easing.
We will now be watching for the official EIA inventory report to confirm this trend. Current refinery utilization rates are holding steady around 88.9%, a sign that refiners are preparing for the upcoming summer driving season demand. An EIA report showing a similar or smaller build could provide a strong catalyst for WTI and Brent crude futures to move higher.
This data arrives as we enter a seasonally strong period for oil prices. Looking back to the spring of 2025, we saw finished motor gasoline demand increase by over 4% between April and June. Traders should consider positioning for a repeat of this seasonal strength, possibly through buying June call options to capture potential upside.
The geopolitical landscape also remains a critical factor, with ongoing tensions in major producing regions providing a floor for prices. This underlying risk keeps implied volatility for crude options elevated around 29%. This environment suggests that even with bullish inventory data, constructing strategies like bull call spreads could be prudent to manage costs and define risk.
From a historical perspective, the second quarter often sees the market shift focus from inventory builds to future demand. The current market setup feels similar to early 2025, when an inventory overhang was eventually absorbed by strengthening global demand. Therefore, selling cash-secured puts below the current market price could be a way to collect premium while setting a favorable entry point if a temporary dip occurs.
