WTI price drifts lower to around $61.55 in Thursday’s early Asian session.
Oil inventories rose by 3.454 million barrels in the week ended May 9, according to the EIA.
A rebound in the US Dollar also weighed on prices on the WTI price.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.55 during the Asian trading hours on Thursday. The WTI price tumbles amid a surprise rise in US crude oil inventories and renewed demand concerns.
US crude oil inventories posted an unexpected build last week, prompting investor concerns of excess supplies. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the US for the week ending May 9 climbed by 3.454 million barrels, compared to a fall of 2.032 million barrels in the previous week. The market consensus estimated that stocks would drop by 1.0 million barrels.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) are set to boost oil exports in May and June, which might cap the upside for the black gold. OPEC has raised oil output by more than previously expected since April, with its May output likely to increase by 411,000 barrels per day.
Optimism over easing global trade tensions has prompted traders to dial back odds of a recession. This, in turn, could provide some support to the Greenback and weigh on the USD-denominated commodity price as it makes oil more expensive for investors holding other currencies.
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