Why Crude Oil (CL) fell 5.99% on August 4, 2026

Crude Oil (CL) fell 5.99% on August 4, 2026 — Crude inventory build crushes oil prices.

The API reported an unexpected weekly crude inventory build, signaling looser near-term supply conditions as the market processes Iran diplomacy reducing geopolitical tension.

A surprise inventory build shows demand-supply balance deteriorating, pressuring near-term crude prices; combined with cooling Middle East tensions and sluggish global demand growth, the geopolitical premium that…

In the Oil & Geopolitics theme, this move reflects traders abandoning the Iran-supply-shock narrative—the equity-oil divergence signals that the supercycle narrative has peaked and structural demand softness (China EV…

If the EIA report later shows a draw instead of a build, or if the build is concentrated in non-price-sensitive storage categories, crude could rebound; alternatively, if geopolitical tensions re-escalate sharply, the…