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WTI Crude Oil Strengthens as US Crude Inventories Post Greater Decline

Early on Wednesday, WTI crude oil prices are on the rise, supported by the release of the API report in the previous session which revealed a larger than expected drawdown in US crude stockpiles. At the time of writing, WTI crude oil is trading at around $41.79 per barrel.

According to the API report, US crude inventories declined by 5.1 million barrels to 482 million barrels over the past week. Economists had forecast a smaller decline of 913k barrels instead, and the greater decline raised hopes of improvement in the demand for crude oil across the world’s largest energy consumer.

In addition, gasoline inventories also fell by 3.3 million barrels, while the forecast was for a decline by 263k barrels instead. Stockpiles of distillates also saw a larger than expected decline, falling by 5.6 million barrels against expectations for a 1.9 million barrel for instead.

The positive sentiment in oil markets also remains supported by promising news about Pfizer’s vaccine against COVID-19, with an efficiency rate of over 90%. The rollout of a vaccine is expected to not only stem the downturn in the global economy but also help crude oil demand recover around the world.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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