WTI Crude Oil Sees Slight Dip as 2020 Forecasts Revised Lower

WTI crude oil prices have dipped slightly but continue to hold onto gains from the previous session following a greater than expected

WTI Crude Oil Sees Slight Dip as 2020 Forecasts Revised Lower

Early on Thursday, WTI crude oil prices have dipped slightly but continue to hold onto gains from the previous session following a greater than expected decline in US crude inventories indicating signs of improving oil demand. At the time of writing, WTI crude oil is trading at around $42.59 per barrel.

According to the EIA report which released on Wednesday, fuel demand in the US climbed to 19.37 million bpd during the previous week – the highest level seen since March. Meanwhile, crude output declined to 10.7 million bpd from 11 million bpd even as crude stockpiles fell by 4.5 million barrels during the previous week against economists’ expectations for a 2.9 million barrel decline.

As the coronavirus pandemic rages on,  EIA revised its 2020 forecasts for US crude production lower, from 600k bpd decline previous to a decline by 990k bpd. US oil production is expected to touch 11.26 million bpd in 2020, as per latest estimates by the EIA.

Meanwhile, OPEC also revised global oil demand forecasts for this year lower in its latest monthly report. According to OPEC’s latest estimates, world’s oil demand could fall by 9.06 million bpd in 2020, down from last month’s estimate for a decline by 8.95 million bpd instead.

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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