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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