WTI slumps to 8-week lows below $52 after EIA data
|- EIA's weekly report shows a surprise buildup in crude oil inventories.
- Trade war fears continue to weigh on crude oil prices.
- Slowdown in global economic growth is expected to hit energy demand.
Crude oil prices came under a renewed selling pressure in the last hour after the data published by the US Energy Information Administration (EIA) showed a surprise buildup in crude oil inventories. After losing nearly 3% on Tuesday, the barrel of West Texas Intermediate extended its slide and touched its lowest level since mid-June at $51.50. As of writing, the WTI was down 4% on the day at $51.30.
In its weekly report, the EIA said crude oil inventories in the US increased by 2.4 million barrels in the week ending August 2 compared to analysts' estimate for a decline of 2.8 million barrels. Further details of the publication showed that gasoline and distillate fuel production both increased in the same period.
Demand outlook continues to impact WTI
Meanwhile, surprise rate cuts announced by several central banks today reminded investors of the negative impact of the US-China trade conflict on the global economic outlook and revived concerns over energy demand outlook. Yesterday, the EIA in its monthly report announced that it lowered the forecast for 2019 global demand growth by 70,000 barrels per day to 1 million barrels per day.
"The market continues to trade lower on concerns about demand growth and the idea that economic growth can be impacted by the trade war," Gene McGillian, vice president of market research at Tradition Energy in Stamford Connecticut, told Reuters.
Technical levels to watch for
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