Early on Thursday, WTI crude oil futures are trading bearish after posting some gains in overnight trading during the previous session as a result of an unexpected build in US crude inventories. At the time of writing, WTI crude oil is trading at around $37.76 per barrel.

The API report which released on Tuesday indicated an increase in crude stockpiles by 3 million barrels over the previous week. The figure shocked oil traders by going against economists’ forecast for a drawdown of 1.4 million barrels instead.

Additional bearishness in crude oil prices was driven by reports that prominent commodity traders are booking tankers to store crude oil as supply overtakes demand in global markets. Oil demand has been weak since the beginning of the coronavirus pandemic back in March when most countries around the world went into shutdown mode.

Leading oil producing nations and their allies, a group known as OPEC+, are scheduled to hold their next meeting on September 17, where the focus is expected to be on weak demand. Despite lockdowns being eased in most parts of the world, international travel has not resumed, driving a severe reduction in the demand for crude oil.