WTI Crude Oil Prices Dip as EIA Reports Build in Gasoline Inventories
WTI crude oil is trading somewhat bearish, reversing some of its recent gains after touching the highest level in over a year during the
Early on Thursday, WTI crude oil is trading somewhat bearish, reversing some of its recent gains after touching the highest level in over a year during the previous session as the EIA reported a rise in gasoline inventories. At the time of writing, WTI crude oil is trading at around $58.37 per barrel.
According to the EIA, crude stockpiles in the US fell for a third consecutive week, declining by 6.6 million barrels to 469 million barrels – the lowest level seen since March 2020. While this raised hopes for improvement in crude demand at the world’s largest energy consumer, gasoline inventories increased during the past week by 4.3 million barrels, preventing traders from cheering the decline in crude inventories.
Crude oil prices have been on the rise for eight consecutive sessions, but some analysts have cautioned that traders are being too optimistic too soon about the pick-up in demand. The outlook on oil has been bullish following the rollout of COVID-19 vaccines across parts of the world, in the hopes that it could help bring the pandemic under control, avoid future lockdowns and help oil demand rebound.
In addition, crude oil has also found support from an improvement in the overall market sentiment even as the US dollar’s value weakens. A weakness in the dollar makes oil more affordable to purchase for holders of other currencies.
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