The decline in WTI crude oil continues over rising risks of possible recession amid rising global trade tensions. At the time of writing, WTI crude oil is trading at around $54.96 per barrel.

On the one hand, weak economic data from China has increased the risks of a global economic slowdown. In addition, US Treasury’s bond yield curve inverted for the first time since 2007 on Wednesday, pointing to increasing concerns that the US economy is heading towards recession.

Crude oil prices faced further downward pressure over the release of the most recent EIA report on Wednesday. According to EIA, US crude inventories rose by 1.6 million barrels during the previous week, while expectations were for a decline of 2.8 million barrels.

US crude inventories now stand at 440.5 million barrels, around 3% higher than the average across five years.