WTI Crude Oil Turns Bearish as API Report Reveals Build in Crude Inventories
Arslan Butt • 1 min read
Early on Wednesday, WTI crude oil prices have weakened on the back of an unexpected build in US crude inventories over the previous week, reigniting worries about oversupply even as economies reopen. At the time of writing, WTI crude oil is trading at around $38.15 per barrel.
In the previous session, WTI crude oil prices had gained by around 2% over optimism surrounding economic recovery as countries lifted lockdown measures, even as OPEC+ nations agreed to extend deeper supply cuts for one more month. However, some analysts have expressed caution over the sudden uptick in oil prices even as demand is yet to pick up at a corresponding pace.
According to the API report which released on Tuesday, crude stockpiles in the US grew by 8.4 million barrels during the past week. Economists had forecast a drawdown of 1.7 million barrels for the period instead.
Crude oil has also come under pressure over worries that, even as economies reopen, recovery could take much longer. A return to pre-pandemic levels of economic growth could take significant amount of time amid rising levels of unemployment across most countries in the world, which could keep oil demand under check in the coming months.