WTI crude oil continues its bearish run into the fourth consecutive day despite the latest API report providing some hope for improvement in activity among US refiners following the Texas deep freeze as markets focus on escalating worries about weak oil demand recovery across Europe. At the time of writing, WTI crude oil is trading at around $64.71 per barrel.
The API report which released in the previous session revealed a decline in US crude inventories by 1 million barrels over the past week, going against economists’ expectations for a build of 3 million barrels instead. However, the data failed to impact crude oil prices as gasoline stockpiles reported a smaller than expected drawdown of 926k barrels instead of the 3 million barrel drop forecast.
Crude oil prices have also come under pressure over estimates of weak oil demand across Europe, with France registering a 10.8% YoY decline in road fuel consumption during the month of February. Even as oil demand is on the rise in key markets like the US and India, weak data out of Europe is heightening tensions among oil traders.
Later today, crude oil could experience some volatility on the release of official EIA data on crude inventories. In addition, the conclusion of the Fed’s latest monetary policy meeting on Wednesday can drive moves in the US dollar, which can also impact oil prices.