WTI Crude Oil Still Bullish as API Report Shows Decline in Stockpiles
On Thursday, WTI crude oil prices are gaining strength in early trading, buoyed by reports of a decline in US crude inventories over the previous week and OPEC+ countries confirming full compliance with additional supply cuts in September. At the time of writing, WTI crude oil is trading at around $41.08 per barrel.
Crude oil prices have managed to trade bullish for three consecutive sessions this week even though weak demand concerns persist amid a resurgence in cases across Europe, forcing countries to impose more restrictions. On Wednesday, WTI crude oil prices strengthened by over 2% in overnight trading.
The bullishness was triggered by the release of the API report which revealed a reduction in stockpiles of crude, distillate and gasoline over the past week. According to the API, crude inventories were down by 5.4 million barrels while distillate stocks declined by 3.9 million barrels – far greater than analysts’ forecast.
Crude oil prices also enjoy support from reports that indicate that OPEC and its allies registered a 102% compliance with the agreed upon deeper production curbs, helping balance the supply side of oil markets. The markets have also received support after ANZ research estimates steep increase in crude oil imports by China and India in the month of September.
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