WTI crude oil is trading bearish early on Wednesday following the API reporting an unexpected build in US crude inventories even as President Donald Trump threatened to not sign the coronavirus relief bill. At the time of writing, WTI crude oil is trading at around $46.27 per barrel.
Over the previous session, crude oil prices declined by almost 2%, falling for the second consecutive session after the API report’s release reignited concerns of weak demand. According to the API, crude stockpiles in the US increased by 2.7 million barrels over the past week instead of declining by 3.2 million barrels as forecast by economists.
In addition, distillate stocks also rose by 1 million barrels, adding to fears about the latest wave of the pandemic hurting fuel demand. Economists were expecting distillate inventories to decline by 904k barrels instead.
Crude oil received yet another shock and turned even more bearish on Tuesday after US President Donald Trump urged Congress to distribute more money in the form of stimulus checks before signing the bill. Trump’s latest threat further delays any hope for more stimulus measures to support the US economy.