Crude Oil Continues to Slide Lower, Inventories Build Up in the US
WTI crude oil prices continued their slide on Wednesday over growing concerns of an economic slowdown because of trade tensions.
WTI crude oil prices continued their slide on Wednesday over growing concerns of an economic slowdown because of trade tensions. To make matters worse, API reported an unexpected build in crude inventories in the US for the week ending May 31.
At the time of writing, WTI crude oil is trading at around $53 per barrel. According to the API report, crude inventories were 3.5 million barrels higher last week, totaling 478 million. The figure beat expectations which were for the inventories to fall by 849,000 barrels.
Oil markets have been tense for the past few weeks as the trade war between the US and China continues. Investors are worried that it could lead to a slowdown in the global economy, which could result in lower demand for crude oil across countries.
To compound investor concerns, US announced a new set of tariffs on Mexico until it curbs illegal immigration. The new tariffs of 5% on all Mexican goods are expected to start on June 5 and could continue climbing higher up to 25% till Mexico takes action on migrants from Central America seeking asylum in the US.
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