WTI Crude Oil Finds Some Support as API Report Reveals Unexpected Decline in US Crude Stockpiles - Forex News by Strategia Forex
WTI crude oil

WTI Crude Oil Finds Some Support as API Report Reveals Unexpected Decline in US Crude Stockpiles

Posted Wednesday, October 2, 2019 by
Arslan Butt • 1 min read

After several days of weak trading, WTI crude oil prices edged higher after the API report released on Tuesday revealed a surprising decline in US crude stockpiles. At the time of writing, WTI crude oil is trading at around $54.18 per barrel.

Disappointing manufacturing activity data from the US and ongoing trade tensions between the US and China have weighed heavily on crude oil at the start of this week. Tuesday marked the sixth consecutive day of losses for WTI crude oil after US manufacturing activity shrank to a 10-year low during September.

Going against economists’ expectations for expansion, ISM manufacturing index dipped to 47.8 in September, 1.3 points lower than in August. The manufacturing sector was severely impacted by a drop in exports on account of the trade war with China.

Crude oil received some support and pared some losses after the API report revealed an unexpected drop in US crude inventories by 5.9 million barrels during the previous week. Economists were expecting a 1.6 million barrel increase instead.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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