WTI slumps to near $61.50 on higher US stockpiles

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • 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.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
WTI moves above $64.50 due to odds of Saudi Arabia raising August Oil prices for AsiaWest Texas Intermediate (WTI) Oil price gains ground for the second successive session, trading around $64.60 during the European hours on Tuesday.
Author  FXStreet
4 hours ago
West Texas Intermediate (WTI) Oil price gains ground for the second successive session, trading around $64.60 during the European hours on Tuesday.
placeholder
OPEC+ Announces Further Production Increase, Crude Oil Prices Likely to DropWTI prices are still about $12 below the previous Monday's high, as prices lack upward momentum due to easing Middle East peace tensions and OPEC+ members expecting another increase in production in August.
Author  Insights
Jun 30, Mon
WTI prices are still about $12 below the previous Monday's high, as prices lack upward momentum due to easing Middle East peace tensions and OPEC+ members expecting another increase in production in August.
placeholder
WTI holds steady near $64.50 on easing risk in Middle EastWest Texas Intermediate (WTI), the US crude oil benchmark, is trading around $64.50 during the Asian trading hours on Monday.
Author  FXStreet
Jun 30, Mon
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $64.50 during the Asian trading hours on Monday.
placeholder
WTI trades with caution around $64.00 as tariff deadline approachesWest Texas Intermediate (WTI), futures on NYMEX, exhibit a sluggish performance slightly above the two-week low of $63.73 From Wednesday.
Author  FXStreet
Jun 27, Fri
West Texas Intermediate (WTI), futures on NYMEX, exhibit a sluggish performance slightly above the two-week low of $63.73 From Wednesday.
placeholder
WTI rises to near $65.00 as US crude inventories fell on higher demandWest Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.00 during the Asian trading hours on Thursday.
Author  FXStreet
Jun 27, Fri
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.00 during the Asian trading hours on Thursday.
Real-time Quote