WTI crude oil

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

Posted Wednesday, August 14, 2019 by
Arslan Butt • 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.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Crude Oil has been bearish for more than a year, but this week we saw a decent reversal higher on higher Caixin manufacturing
14 hours ago
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments