WTI Crude Oil Continue to Slide as Markets Focus on Weakening Demand Concerns
On Wednesday, WTI crude oil is trading weak as the focus stays on declining demand driven by global trade tensions. At the time of writing, WTI crude oil is trading at around $56.65 per barrel.
Hopes for a partial trade deal between the US and China which had boosted the market sentiment in recent weeks and supported oil prices appear to be diminishing. US President Donald Trump reiterated that talks were progressing, but did not provide any additional information on the possible date and venue where the deal could be signed.
Meanwhile, crude oil prices were also pressured by the release of IEA’s annual World Energy Outlook which forecast a downfall in global oil demand growth. According to the IEA, global demand for oil is expected to rise by around 1 million bpd till 2025 but could weaken to average around 100,000 bpd over innovation for fuel efficient systems and as electric vehicle adoption becomes more widespread.
WTI crude oil is also likely to trade cautious ahead of the release of EIA’s crude inventories report for the US later today. Economists are anticipating the report to reveal a build-up of around 1.6 million barrels in US crude stockpiles during the previous week.
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