WTI Crude Oil Weakens as API Reports Build in Inventories

WTI crude oil is trading weaker early on Wednesday following the release of the API report in the previous session; however, losses remain

Arslan Butt•Wednesday, December 9, 2020•1 min read

WTI Crude Oil Weakens as API Reports Build in Inventories

WTI crude oil is trading weaker early on Wednesday following the release of the API report in the previous session; however, losses remain limited over optimism that the vaccine could contain the pandemic and improve oil demand soon. At the time of writing, WTI crude oil is trading at around $45.37 per barrel.

According to the API report which was released on Tuesday, crude inventories in the US increased by 1.14 million barrels during the past week. Economists had forecast a drawdown of 1.42 million barrels instead, and the unexpected build turned crude oil bearish.

Crude oil enjoys some support from rising hopes in the markets that the rollout of the vaccine could help drive economic recovery and increase the demand for oil across the world. Britain became the first country in the world to begin mass vaccination, and other countries are soon to start distribution as well.

Later today, WTI crude oil prices could experience movement on the release of the official EIA inventories’ report during the US session. In the wake of the latest spike in cases, the report would be able to offer more accurate insight into oil demand in the country.

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ABOUT THE AUTHOR See More

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.