WTI Crude Oil Erases Gains Following Unexpected Rise in US Crude Inventories

WTI crude oil's bearishness continues into Wednesday after the API report from the previous day showed an unexpected build in US crude ...

Arslan Butt•Wednesday, August 14, 2019•1 min read

WTI crude oil’s bearishness continues into Wednesday after the API report from the previous day showed an unexpected build in US crude inventories. At the time of writing, WTI crude oil is trading at around $56.40 per barrel.

On Tuesday, crude oil prices climbed slightly higher buoyed by the news that US President Trump had decided to delay tariffs on some Chinese goods. This development was seen as a positive sign in the US-China trade war, and sent crude oil prices almost 5% higher.

However, the API report released later revealed that US crude inventories rose 3.7 million barrels higher during the previous week to touch 443 million. Meanwhile, analyst expectations were for crude inventories to decline by 2.8 million barrels for this period.

WTI crude oil prices were also being supported by expectations that Saudi Arabia and other OPEC members would curb crude production as oil demand lowers owing to a slowdown in the global economy. Last week, Saudi had raised the possibility of restricting crude exports within 7 million bpd during August and September to prevent oil prices from declining further.

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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.