WTI Crude Still Sliding Lower as EIA Reports Build in US Gasoline Stocks
The bearishness in WTI crude oil prices remains ongoing after the EIA reported a build in gasoline inventories in the US over the past week
Early on Thursday, the bearishness in WTI crude oil prices remains ongoing after the EIA reported a build in gasoline inventories in the US over the past week, adding to worries about weakness in demand. At the time of writing, WTI crude oil is trading at around $39.79 per barrel.
According to the EIA report which released on Wednesday, US gasoline stockpiles registered a 1.9 million barrel rise during the previous week. Economists had forecast a drop of 1.8 million barrels for the period instead. Overall supply of crude products touched 18.3 million bpd, 13% lesser than the corresponding period in 2019, revealing the continued weakness in demand.
The outlook for crude oil remains bleak even as the number of coronavirus cases rise across Europe and North America, forcing authorities to announce fresh restrictions which are likely to impact demand even more. In addition, China has also suspended outbound travel to prevent the spread of the pandemic, which is also keeping oil demand under pressure.
Oil traders, for now, eagerly await positive developments in the coronavirus relief package to offer temporary respite in the hopes that it could improve the demand for crude oil slightly. However, the overall sentiment for oil remains bearish in the wake of the rising cases and the economic impact of the pandemic, despite various stimulus measures being undertaken by governments in the US and around the world.
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