US crude settles 3.2% lower at $102.43 per barrel as surprise inventory build rattles traders

West Texas Intermediate crude oil futures dropped 3.2% to settle at $102.43 per barrel on September 16, snapping back from a sharp rally in the prior session. The culprit: an unexpected surge in US crude inventories that caught the market leaning the wrong way.

The American Petroleum Institute reported that US crude stocks rose by 7.1 million barrels for the week ending September 11. Analysts had expected a drawdown.

From rally to reversal in 24 hours

Just one session earlier, WTI had climbed more than $3 on the back of fresh supply fears. A Houthi attack on Saudi Arabia’s East-West pipeline, a critical piece of infrastructure that allows oil to bypass the Strait of Hormuz, had reignited concerns about the vulnerability of Middle Eastern supply routes.

Brent crude, the international benchmark, traded in the $107 to $108 range on the same day. WTI’s front-month futures had been bouncing between $102 and $105 heading into the session, and the inventory report pushed prices toward the bottom of that range.

The bigger picture: oil in 2026

WTI prices in 2026 have averaged significantly above corresponding levels from the previous year, with year-over-year gains running around 60%. The Strait of Hormuz, through which roughly a fifth of the world’s oil passes daily, has been a persistent flashpoint throughout the year.

For context, WTI averaged around $78 per barrel in 2024. The jump to triple digits reflects both real supply constraints and the market pricing in the probability that things could get worse before they get better.

What the inventory surprise means

A 7.1 million barrel build is substantial. It suggests that at least in the near term, US supply is more comfortable than the geopolitical narrative would imply.

The next data point to watch will be the official government inventory report from the Energy Information Administration, which typically follows the API data by a day. If it confirms the scale of the build, WTI could face additional pressure toward the $100 psychological level. If it comes in lighter than the API figure, traders may treat the selloff as an overreaction and bid prices back up.

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