WTI Crude Oil Prices Weaken After API Report Reveals Surprising Build in US Crude Inventories

WTI crude oil continues to slide lower into Wednesday following the release of the API report in the previous trading session which revealed a surprising build-up in crude inventories in the US. At the time of writing, WTI crude oil is trading at around $56.90 per barrel.

According to the API report, crude inventories in the US increased by 4.3 million barrels during the previous week to 440.5 million barrels, significantly higher than analyst expectations for a 1.5 million barrel build-up. This caused a weakness in WTI oil prices.

However, crude oil prices remain supported over the prevailing optimism in global markets for a US-China trade deal being inked soon. Latest reports suggest that negotiations towards the “Phase 1” trade deal are progressing well and that the US could also be exploring ways to cut down some more tariffs.

Crude oil also slid lower as OPEC officials dismissed the possibility of extending further production cuts. However, according to OPEC’s Secretary-General Mohammad Barkindo, expectations are high that oil demand could turn around and rise in 2020, which could keep prices supported in the coming year.