WTI Crude Oil Prices Slip Lower on a Greater Than Expected Build in US Crude Inventories

WTI crude oil prices edged lower early on Thursday following the release of the API report during the previous trading session. At the time of writing, WTI crude oil is trading at around $52.89 per barrel.

According to the API, US crude stockpiles reportedly soared 10.5 million barrels higher during the previous week to touch 432.5 million barrels. Analysts were expecting a build of about 2.8 million barrels for this period.

The greater than expected build-up in inventories once again weighs on oil markets as it is a sign of weakening demand. If the US government’s EIA report backs up these figures, it would be the biggest build-up in US crude inventories in over two years.

Crude oil prices have been trading pressure for the most part of this year as trade tensions escalate and cause a slowdown in the global economy. Amid an economic slowdown, the demand for oil goes down, and although OPEC and allies have curbed productions, oil prices have been unable to strengthen over the past few months.