WTI Crude Oil Prices Dip as API Reports Sudden Build in Crude Inventories
WTI crude oil prices continue to trade weak after slipping in the previous session following an unexpected increase in US crude inventories
On Thursday, WTI crude oil prices continue to trade weak after slipping in the previous session following an unexpected increase in US crude inventories over the past week, raising concerns about weak demand all over again. At the time of writing, WTI crude oil is trading at around $31.59 per barrel.
According to the API report which released on Wednesday, crude stockpiles in the US grew by 8.7 million barrels during the previous week. Economists had forecast a drawdown in inventories by 1.9 million barrels instead, which sent crude oil prices lower as a result.
Crude oil also turned bearish over rising uncertainty about whether Russia would continue with deeper supply cuts that it hard earlier agreed to. Markets are anticipating Russia to push back against implementing additional curbs in crude production at the next meeting of OPEC and allies, due to take place in early June.
Amid the possibility of strain in ties between Saudi Arabia and Russia over the issue of supply cuts, OPEC+ is also likely to focus on US shale oil producers to see if they hike up production in the coming weeks as oil prices start to stabilize. Analysts worry about the risk of US shale oil producers restarting some of their wells in the hope for improvement in demand as economies begin to reopen.
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