WTI Crude Oil Steadies After Two Days of Decline, Weak Demand Weighs
Early on Wednesday, WTI crude oil prices are trading steady after two consecutive days of weakness as traders await market moving updates from the EIA and news on the trade deal. At the time of writing, WTI crude oil is trading at around $55.36 per barrel.
According to the API report released on Tuesday, US crude inventories soared by 6 million barrels during the previous week to touch 445.9 million barrels. Analysts were expecting a more moderate rise by 1.5 million barrels for this period.
The rise in crude inventories brought back worries of oversupply amid weakening demand, weighing on oil markets and keeping crude oil prices under pressure. Markets are now expecting OPEC and its allies to explore the possibility of further curbs in crude production when they meet on December 5-6 in Vienna.
However, Russia has already hinted that it is not too keen on deeper curbs, which are likely to drive further weakness in oil prices. Meanwhile, hopes for the interim trade agreement between the US and China are fading as both sides continue to disagree on the issue of tariff rollbacks.
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