WTI Crude Oil Trades Bullish as US to Approve Vaccine Soon

WTI crude oil prices are climbing higher early on Thursday despite the EIA reporting an unexpected build in US crude inventories, as traders

WTI Crude Oil Trades Bullish as US to Approve Vaccine Soon

WTI crude oil prices are climbing higher early on Thursday despite the EIA reporting an unexpected build in US crude inventories, as traders focus on the optimism surrounding the vaccine rollout in Britain and the possibility of US approving the vaccine soon. At the time of writing, WTI crude oil is trading at around $45.75 per barrel.

On Wednesday, the EIA reported a huge increase in US crude inventories over the past week, with a build of 15.2 million barrels. Economists had forecast a decline in crude stockpiles by 1.4 million barrels instead, and the increase highlighted worries about the impact of lockdowns and restriction on oil demand.

However, the risk-on sentiment in global markets continues to support crude oil prices, erasing worries of weakness in oil demand, as traders remain hopeful that the rollout of the vaccine can drive economic recovery. As economies begin to emerge out of the pandemic-driven downturn, the demand for oil could also pick up in the near future.

In addition to the market sentiment, crude oil prices also remained stronger over reports that wells in an oilfield in Iraq were subject to a terror attack. However, the government later confirmed that the attack did not hamper oil production.

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.

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