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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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.
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