WTI extends slide to multi-month lows near $63 on demand worries
|- Crude oil prices are falling for the sixth straight day.
- Worsening demand outlook and strengthening USD drag WTI lower.
- Falling crude oil inventories in US failed to help oil stage a rebound.
Crude oil prices fell for the fifth straight day on Wednesday and the barrel of West Texas Intermediate (WTI) lost more than 7% during that period. On Thursday, WTI extended its slide and touched its lowest level in nearly three months at $62.81. As of writing, WTI was down 1.7% on the day at $63.30.
Oil suffers losses on flight to safety
The worsening energy demand outlook amid increasing cases of coronavirus Delta variant globally continues to weigh on oil prices. Additionally, the risk-averse market environment, reflected by sharp declines in global equity indexes, is making it difficult for oil to find demand.
Additionally, the broad-based USD strength is also putting additional weight on WTI's shoulders. After the FOMC's minutes of its July policy meeting reaffirmed policymakers' willingness to start reducing asset purchases before the end of the year, the US Dollar Index reached a new 2021 high of 93.50.
Meanwhile, the US Energy Information Administration's weekly report revealed that commercial crude oil inventories in the US decreased by 3.2 million barrels in the week ending August 13. Although this was a larger-than-expected in oil inventories, WTI struggled to gain traction.
Technical levels to watch for
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