WTI Crude Oil Mostly Steady as Markets Worry About Dip in Supply
Arslan Butt • 1 min read
WTI crude oil prices are exhibiting mixed trading early on Thursday, with worries about supply being impacted due to the closure of oil production facilities at the Gulf of Mexico due to the storm offsetting concerns about weak oil demand in the wake of the ongoing coronavirus crisis. At the time of writing, WTI crude oil is trading at around $43.36 per barrel.
Oil producers closed down around 84% of crude output in the Gulf of Mexico region before Hurricane Laura hits, bringing down production by around 1.56 million bpd. While crude oil prices had initially made some gains in anticipation of the storms’ impact on oil supply, gains remain limited due to high stockpiles of crude as a result of weak demand because of the pandemic.
WTI crude oil prices received additional support from the release of the EIA report in the last session which revealed that crude stockpiles fell by more than expected in the US during the previous week. According to the EIA, crude inventories in the country declined by 4.7 million barrels to 507.8 million barrels, against economists’ expectations for a fall by 3.69 million barrels instead.
However, the coronavirus pandemic continues to be the main area of focus driving moves in oil markets. Oil prices are under pressure as the number of cases continue to climb higher across Asia and Europe after economies reopened, which are impeding economic recovery in these regions.