WTI Crude Oil Prices Strengthen as API Reports Greater Decline in Inventories
On Wednesday, WTI crude oil prices are on the rise for a seventh consecutive day, supported by the API reporting a decline in US crude inventories and helping traders focus on the possibility of an improvement in demand despite the pandemic that still rages on. At the time of writing, WTI crude oil is trading at around $53.86 per barrel.
According to the API report which released in the previous session, crude stockpiles in the US dropped by 5.8 million barrels to 484.5 million barrels over the past week. The decline was more than the economists’ forecast, which was for a drop of 2.3 million barrels instead.
Crude oil has strengthened to pre-pandemic levels after having hit record lows from March 2020 when the coronavirus outbreak that started in China spread to most parts of the world. The resultant lockdowns that were announced by most governments had caused the demand for oil to crash and sent the global economy into a severe downturn, further impacting the outlook for oil and energy.
Across Europe and the US, fresh infections and deaths due to the virus continued to surge, even though the vaccine rollout is underway in these regions. Despite fears about the pandemic’s impact on oil demand, crude oil prices enjoy support from Saudi Arabia’s recent decision for deeper supply cuts.
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