⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

WTI Crude Oil Slides Lower as Demand and Supply Concerns Weigh on Markets

Ahead of the signing of the US-China phase one trade deal, WTI crude oil prices continue to weaken over fears that the partial trade agreement may not have much of an impact on demand for oil. At the time of writing, WTI crude oil is trading at around $58.10 per barrel.

Crude oil prices are trading cautious, reigning in the recent optimism surrounding the phase one deal after US Treasury Secretary indicated that tariffs on Chinese goods would continue at least until phase two of the agreement is ready. The continuation of tariffs is expected to keep Chinese manufacturing sector under pressure and cause no significant uptick in demand for oil in the world’s largest oil consumer.

Crude oil prices are also trading under pressure after recent reports reveal that US could increase crude output in 2020 by more than initially forecast. The EIA expects US oil production to soar to 13.30 million bpd in 2020, supported by increased output in the Permian region.

In addition, the API report revealed a build-up in US crude inventories over the previous week by 1.1 million barrels, going against economists’ expectations for a drawdown instead.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
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.
Related Articles