WTI Crude Oil Turns Bullish on the Release of API Crude Inventories Report

WTI crude oil prices  have steadied after edging higher over an unexpected decline in US crude inventories for the second consecutive week. At the time of writing, WTI crude oil is trading at around $57.35 per barrel.

According to the API report which released on Wednesday, crude inventories in the US declined by 541k barrels during the previous week, against economists’ expectations for a build-up of 1.6 million barrels instead. The surprising fall in crude inventories gave a boost to WTI crude oil prices since the previous session.

Crude oil prices were also boosted after Fed Chair Powell’s congressional testimony which offered more optimism about the strength of the US economy. Powell’s comments reinforced the Fed’s outlook that the US economy is not headed towards a recession, even though a rebound may not happen in the near future.

Despite mounting worries that a US-China trade deal may take longer than previously expected which had weighed on oil markets, OPEC secretary general Mohammad Barkindo also reassured markets that global fundamentals for oil markets appeared to be positive. He also expressed hope that the US and China could finalize their trade deal which would serve to lift the mood in oil markets considerably.