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