Mixed Trading in WTI Crude Oil as US Crude Inventories Rise Beyond Expectations
Arslan Butt • 1 min read
WTI crude oil is starting a fresh month on a mixed note as the sentiment remains dominated by fears about a potential oversupply in markets even as latest data reveals a larger than forecast build in US crude inventories. At the time of writing, WTI crude oil is trading at around $20.55 per barrel.
During the previous session, the API report revealed that crude stockpiles in the US increased by 10.5 million barrels during the previous week, significantly higher than the economists’ forecast of a build-up of 4 million barrels. Amid weakening demand in the wake of the coronavirus pandemic, this data adds more downward pressure on crude oil prices.
WTI crude oil prices are trading close to the lowest levels seen in 18 years as markets continue to focus on the ballooning coronavirus crisis, which continues to keep oil demand subdued due to the shutdowns and travel restrictions across the world. For the first quarter of the year, crude oil futures were almost 70% lower after prices crashed in March over the Saudi Arabia-Russia price war.
The price war continues to remain a major issue as leading oil producers of the world have still not reached an agreement about stepping in to stabilize oil markets. Analysts remain pessimistic about OPEC members agreeing to cut production to compensate for the reduction in demand due to coronavirus.