WTI Crude Oil Extends Declines on Possible US Crude Stockpile Build

WTI crude oil prices are sliding lower in early trading on Tuesday, turning bearish for the third consecutive day as markets fear an increase in US crude stockpiles even as the decision to halt coronavirus vaccines across some European countries dents the market sentiment. At the time of writing, WTI crude oil is trading at around $64.90 per barrel.

During the previous session, WTI oil lost around 0.5% of its value and climbed another 0.8% lower early in today’s Asian session. The market sentiment soured after Germany, France and Italy decided to stop administering the AstraZeneca COVID-19 vaccine.

Recent reports point to possible increase in blood clots amid patients who were administered this vaccine, raising safety concerns among these countries. Despite the WHO maintaining that there is no clear evidence to suggest a link between the vaccine and blood clots, the decision to halt vaccinations has raised fears of a delay in controlling the pandemic and improving economic conditions.

Meanwhile, crude oil is also trading bearish over mounting fears that the Texas deep freeze and the resulting shutdown of oil refineries in the region could drive up crude stockpiles across the US despite an improvement in demand. Last week, US crude inventories increased by 12.8 million barrels against economists’ forecast for a 1 million barrel rise, and this week again, economists are expecting a build in stockpiles.