WTI Crude Oil Prices Weaken: Trade Deal Delay, Weakening Demand Weigh
Early on Thursday, WTI crude oil prices have slid lower following the release of the EIA report in the previous trading session revealing a build in US crude inventories. At the time of writing, WTI crude oil is trading at around $56.38 per barrel.
According to the EIA report which released on Wednesday, US crude stockpiles increased by 7.9 million barrels during the previous week, coming in significantly higher than economists’ expectations which were for a 1.5 million barrel build-up. The EIA report triggered immediate bearishness in WTI crude oil prices as weakening demand concerns once again weighed on markets.
Additional weakness in crude oil prices were driven by latest reports surrounding the US-China trade deal, which point to the signing of the deal being pushed beyond this month and possibly into December. While negotiations remain ongoing and positive, any further delay in signing the partial trade deal would only serve to prolong the trade war tensions and disrupting any progress towards lifting the mood in the markets.
WTI crude oil trades under pressure after the IMF revised its forecasts for Eurozone economic growth and inflation lower, stating that the slowdown could be worse than expected. Manufacturing activity in Eurozone has been declining as a spillover effect of the US-China trade war, worsening the already sour sentiment.
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