WTI crude continues sliding after fresh inventory reports dropped. Product stockpiles just posted a hefty increase, and here's the kicker—domestic crude output is creeping dangerously close to all-time peaks.

What's happening? Refineries are churning out gasoline and distillates faster than the market can absorb them. Storage tanks are filling up, which typically signals weakening demand or oversupply. Either scenario puts downward pressure on prices.

Meanwhile, US drillers aren't backing down. Production levels are hovering near record territory, adding even more barrels to an already saturated market. The combination is brutal for bulls: rising supply meeting tepid demand.

For traders watching energy markets, this matters beyond just oil. Crude prices often serve as a macro indicator—when they weaken, it can signal broader economic softness. Risk assets, including crypto, sometimes catch the fallout when energy markets flash warning signs like this.

The technical picture looks shaky too. WTI failed to hold support after the inventory data, and if production keeps climbing while products pile up in storage, we might see further downside before any meaningful bounce materializes.