WTI Crude Oil Steady After Strong Gains on Wednesday
On Thursday, WTI crude oil is trading somewhat steady after gaining by as much as 40% in the previous session, but oil markets continue to remain volatile over rising fears about the impact of the coronavirus pandemic on global demand. At the time of writing, WTI crude oil is trading at around $14.33 per barrel.
Some geopolitical tensions brewing between the US and Iran have lent crude oil prices some support and helped them climb higher after Trump tweeted that the US Navy has orders to shoot down Iranian gunboats that bother them at sea. However, US oil prices came under pressure following the release of the EIA report which revealed a build-up in crude inventories in the US by 15 million barrels during the previous week.
Along with high volatility, oil markets are experiencing thin trading volumes after the expiration of May contract even as June contract’s value also declined earlier this week. Traders continue to focus on escalating concerns of oversupply in global markets amid the lockdowns that have severely reduced the demand for oil worldwide.
Analysts have already cautioned that oil markets could see further slides and crashes because oil storage facilities are running out of space around the world. As long as demand remains weak, crude oil prices are expected to experience significant downward pressure due to the imbalance between supply and demand.
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