WTI Crude Oil Slips as Markets Worry About US Economic Recovery
WTI crude oil prices slid lower early on Thursday as worries about economic recovery in the US slowing down re-emerge amid the release of
WTI Crude Oil prices slid lower early on Thursday, as worries about the slow-down of economic recovery in the US re-emerge, after the release of weak economic data. At the time of writing, WTI Crude Oil was trading at around $ 39.39 per barrel.
The US is the world’s largest consumer of crude oil, and with the country continuing to see a spike in the number of coronavirus cases, traders fear that the oil demand will fail to pick up anytime soon. Fears of delays in the economic recovery in the US and the rest of the world have soured the risk sentiment in markets and sent the US dollar higher. A higher US dollar makes WTI Crude Oil more expensive for holders of other currencies.
During the previous session, oil prices climbed slightly higher after the release of the EIA report, which revealed a decline in US crude and fuel stockpiles over the previous week. According to the EIA, gasoline inventories declined by 4 million barrels while distillate stocks fell by 3.4 million barrels, offering some hope to traders that the oil demand in the US could be picking up.
However, crude oil turned bearish on the release of PMI data from the US which revealed a slower pace of expansion in the manufacturing sector. In addition, Fed officials stressed on the need for more stimulus to support the US economy, raising fears about a more severe downturn and longer recovery, which could keep oil demand from rebounding soon.
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