WTI Crude Oil Prices Decline as US Crude Stockpiles Rise Unexpectedly - Forex News by FX Leaders
WTI Crude Oil Prices Decline as US Crude Stockpiles Rise Unexpectedly

WTI Crude Oil Prices Decline as US Crude Stockpiles Rise Unexpectedly

Posted Wednesday, February 24, 2021 by
Arslan Butt • 1 min read

Early on Wednesday, WTI crude oil prices are sliding lower following the release of the API report in the previous session which revealed a surprising build in crude stockpiles in the US. At the time of writing, WTI crude oil is trading at around $61.44 per barrel.

According to the API, US crude inventories increased by 1 million bpd during the past week, going against economists’ expectations for a decline by 5.2 million barrels instead. Meanwhile, refinery crude runs were down by 2.2 million bpd for the period.

Later today, WTI crude oil could experience movement on the release of the official EIA report, especially if it is in line with the API report indicating a build in US crude inventories. The numbers were especially surprising for oil traders as US crude production was impacted due to the deep freeze across Texas.

Since the beginning of this year, crude oil prices have strengthened by more than 25%, supported by optimism about the COVID-19 vaccine rollout aiding global economic recovery. In addition, the unexpected cold spell across the US has shut down a significant portion of crude production in the country, raising the possibility of tightening in supply which has lent additional support to prices.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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