WTI Crude Oil Prices Weaken as EIA Reports Build in US Gasoline Inventories
Arslan Butt • 1 min read
Early on Thursday, WTI crude oil is trading bearish, with prices driven lower by a surprising build in US gasoline inventories over the previous week, raising fears that oil demand is still impacted by the effects of the pandemic. At the time of writing, WTI crude oil is trading at around $59.47 per barrel.
The latest downslide in crude oil prices was driven by the release of the EIA report in the previous session. Although the EIA reported a decline in crude stockpiles in the US over the past week by almost 3.5 million barrels, gasoline stockpiles climbed 4 million barrels higher over the period, going against economists’ forecast.
In addition, oil markets are also worried about the prospects of rising crude production even as demand continues to remain weak. In the initial few days of the current month, Russia’s oil output has been on the rise when compared to production levels seen last month.
Meanwhile, OPEC+ has also signaled interest in increasing crude supply by as much as 2 million bpd by July. Even though economists anticipate an improvement in the overall outlook for the global economy this year, which could raise oil demand, there remain considerable uncertainties owing to the recent spike in cases being seen across Europe as well as emerging markets like Brazil and India.