WTI Crude Oil slides below $60 after EIA reports surprise inventory build
- WTI Crude slips below $60, marking a one-week low as bearish momentum stretches into a third straight day.
- US Crude inventories surge by 5.202 million barrels, sharply beating expectations.
- Global manufacturing remains weak, with factory data from the US, China and the Eurozone highlighting fragile demand.
West Texas Intermediate (WTI) Crude Oil extends its decline for the third consecutive day on Wednesday, slipping below the key $60.00 per barrel mark to hit a one-week low after the latest US Energy Information Administration (EIA) report showed a larger-than-expected inventory build. At the time of writing, WTI trades around $59.60, down nearly 1% on the day.
According to the EIA, Crude Oil Stocks Change rose by 5.202 million barrels in the week ending October 31, far exceeding market expectations for a 1.8 million-barrel increase and following the previous week’s draw of 6.858 million barrels.
The data reinforced concerns that US supply remains ample even as global demand shows signs of fatigue. Domestic crude production held near record levels at 13.65 million barrels per day, while net crude imports jumped to 1.56 million bpd, adding to the overall build in inventories.
The report coincides with OPEC+ recently agreeing to a modest output increase of 137,000 barrels per day for December, while signaling plans to pause further production hikes during the first quarter of 2026 to avoid a potential glut amid subdued demand.
On the demand side, global manufacturing activity remains sluggish, adding to the bearish tone. The Eurozone’s HCOB Manufacturing Purchasing Managers Index (PMI) for October rose to 50, a slight improvement from 49.8 in September, signaling stabilization in the region’s factory sector after more than a year of contraction. However, underlying demand remains weak.
In the United States, the ISM Manufacturing PMI stayed in contraction at 48.7. Meanwhile, in China, the official NBS Manufacturing PMI fell to 49, indicating continued weakness among large state-owned enterprises, while the RatingDog (Caixin) Manufacturing PMI eased to 50.6 from 50.9, reflecting softer expansion in smaller private firms.
The combination of a firmer US Dollar (USD), uneven global factory data, and rising Oil inventories is weighing heavily on sentiment, keeping WTI under pressure.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
Author
Vishal Chaturvedi
FXStreet
I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.
