WTI Crude Oil Set for Third Consecutive Day of Losses, Trade Tensions Weigh
WTI crude oil prices continue to slide lower for the third straight day as hopes faded for a US-China trade deal during the upcoming talks
WTI crude oil prices continue to slide lower for the third straight day as hopes faded for a US-China trade deal during the upcoming talks scheduled this week. At the time of writing, WTI crude oil is trading at around $52.43 per barrel.
A weakening in oil demand on the back of slowdown in economic growth is weighing heavily on oil markets, and a prolonged trade war would only serve to delay recovery. In addition, crude oil is also trading under pressure after the release of the API report on Tuesday.
According to the API report, crude stockpiles in the US climbed 4.1 million barrels higher during the previous week to touch 422 million. Economists were expecting an increase of only 1.4 million barrels during this period, and a larger than expected rise has also turned WTI crude oil bearish.
While the EIA report releasing later today can shed more light on the state of US crude stockpiles, oil markets can face extended pressure in the face of rising crude production. According to latest estimates by the EIA, crude production in the US is expected to increase by 1.27 million bpd in 2019 to touch a record high of 12.26 million bpd, higher than the previously forecast rise in crude production by 1.25 million bpd. The EIA expects crude production to rise by 910k bpd next year to touch 13.17 million bpd, revising its previously forecast rise of 990k bpd down.
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