WTI Crude Oil Slips as API Reports Build in Crude Inventories
Arslan Butt • 1 min read
Early on Wednesday, WTI crude oil prices continue to trade weak over renewed worries about a possible second wave of coronavirus even as the US reports an unexpected build in crude inventories even after reopening its economy. At the time of writing, WTI crude oil is trading at around $37.22 per barrel.
Over the previous session, WTI crude oil gained more than 3% of its value over optimism after the IEA revised oil demand forecasts for this year higher and after US retail sales figures came in stronger than expected. The IEA forecasts oil demand to rise to 91.7 million bpd this year, boosted by revival of economic activity across countries.
However, API reported a sudden rise in US crude stockpiles for the previous week, denting the optimism and sending crude oil prices weaker. According to the API report which released late on Tuesday, US crude inventories increased by 3.9 million barrels over the past week to 543.2 million barrels, against economists’ expectations for a fall by 152k barrels instead.
Oil traders are also concerned about the continued rise in the number of coronavirus cases globally, especially in China and the US where fresh outbreaks have been reported. A second wave of coronavirus could send countries back into lockdown mode and hold back recovery which had recently resumed.