WTI Crude Oil Prices Weaken as US Crude Inventories Report Greater Than Expected Build

WTI crude oil prices have slipped lower early on Wednesday amid a surprising rise in US crude inventories, adding to markets' growing

WTI Crude Oil Prices Weaken as US Crude Inventories Report Greater Than Expected Build

WTI crude oil prices have slipped lower early on Wednesday amid a surprising rise in US crude inventories, adding to markets’ growing concerns about oversupply even as demand is yet to return to pre-pandemic levels despite economies reopening. At the time of writing, WTI crude oil is trading at around $40.07 per barrel.

According to the API report which released during the previous session, crude stockpiles in the US increased by 1.7 million barrels over the past week. Economists had forecast a rise of 300k barrels over the period instead – a far smaller increase.

On a positive note, however, the report did reveal an uptick in fuel consumption in the US, with stocks of gasoline and distillates going down over the same period. Hopes of improvement in oil demand as countries emerge out of lockdown have supported crude oil prices in recent weeks, even as leading oil producers commit to deeper supply cuts.

Meanwhile, fears about a second wave of coronavirus dashing recovery in the economy and oil demand globally are keeping oil prices under pressure lately. According to Reuters, new coronavirus cases rose by 25% in the US during the past week compared to the week before that.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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