EIA Reports Build in US Crude Oil Inventories and Production

WTI prices traded close to their lowest levels this year over rising US crude inventories and falling demand over global trade tensions.


WTI crude oil prices traded close to their lowest levels this year over rising US crude inventories and falling demand due to global trade tensions. At the time of writing, WTI crude oil is trading at around $51.80 per barrel.

The trade war continues to dominate market sentiment as US and China offer no updates towards resolving their differences and US threatens to hike tariffs on all Mexican imports over failure to curb illegal immigration. To make matters worse, the EIA report on Wednesday revealed that US crude production climbed to a record high of 124 million bpd, a rise by 1.63 million bpd since May 2018.

Crude oil inventories in the US have also reported a build-up in the week of May 31, rising by 6.8 million barrels to touch 483.2 million barrels. These are the highest levels since July 2017.

As US crude production keeps rising, it offsets the supply cuts in place by OPEC+. In addition, the trade war sentiments are also keeping oil prices lower over worries of a global economic slowdown which could result in lower demand for oil.

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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