WTI Crude Oil Weakens as Stockpiles, Coronavirus Cases Rise in US
WTI crude oil prices are trading extremely bearish early on Wednesday as weak demand concerns flared up amid a rise in US crude inventories and the continuous increase in coronavirus cases. At the time of writing, WTI crude oil is trading at around $38.65 per barrel.
The API report which released during the previous session revealed that crude stockpiles in the US increased by 4.6 million barrels to around 495.2 million barrels over the past week. Analysts had instead forecast a smaller build of around 1.2 million barrels, and the greater than expected build-up raised fears of weak demand.
In addition, crude oil prices are under pressure over the sentiment surrounding the economic impact of the pandemic and how it can keep the demand for oil depressed as well. The recent surge in the number of infections and hospitalizations across the US have raised concerns that authorities could impose fresh restrictions which could further weaken oil demand.
The risk appetite in oil markets has also suffered due to a lack of clarity on the coronavirus relief package. With the presidential elections only a few days away, chances of the fiscal stimulus bill being passed soon have faded – the stimulus could have potentially improved crude oil demand and lifted prices slightly.
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