WTI Crude Oil Turns Bearish Despite Iran Sanctions. What’s Happening?

The selling pressure on crude oil was further boosted by a bigger than expected build in crude oil inventories


US overtakes Russia and Saudi Arabia to become the world’s biggest oil producer. US crude oil production has risen by over 2 million barrels per day (bpd) since early 2018 to touch 12.2 million bpd.

The selling pressure on crude oil was further boosted by a bigger than expected build in crude oil inventories, according to EIA’s weekly report released yesterday. Crude oil stocks increased by 5.5 million barrels in the week of April 19, significantly higher than the 1.25 million barrels the market was expecting.

Despite the announcement of complete sanctions on Iran after May 1, WTI crude oil prices fell by 0.2% to trade at around $65 yesterday. The decision by the US to prevent countries from importing Iran’s oil comes amid supply cuts led by OPEC since the start of 2019.

 

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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