WTI Crude Oil Weakens After Surprising Build in US Crude Inventories

Early on Thursday, WTI crude oil prices are trading weak after sliding nearly 1% lower after the release of the EIA report which revealed a surprising build in US crude inventories during the previous week. At the time of writing, WTI crude oil is trading around $58.85 per barrel.

According to the EIA report, crude stockpiles in the US climbed 822k barrels higher to 447.9 million barrels during last week, going against economists’ expectations for a decline by 2.8 million barrels instead. The overall crude stockpiles have come in around 4% higher than the five-year average for this time of the year.

While WTI crude oil weakened over the EIA report, prices enjoyed some support from OPEC’s latest forecasts that anticipate a slight deficit in the global oil market in 2020. The leading oil producing countries of the world see the supply glut into next year by a rise in US shale output growing at a slower pace than previously forecast. OPEC expects demand for its crude to average around 29.58 million bpd next year.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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