WTI extends slide to weekly lows near $61 after EIA report
- EIA shows larger-than-expected build in crude inventories.
- Trade conflict continues to cloud the demand outlook.
- OPEC to continue to monitor the market ahead of June meeting.
Crude oil came under a renewed pressure in the second half of the day after the weekly data published by the U.S. Energy Information Administration revealed a larger-than-expected increase in the crude oil inventories. The barrel of West Texas Intermediate, which rose toward the $64 mark earlier this week, was last seen trading at $61.32, losing 2.65% on a daily basis.
According to the EIA, commercial crude oil inventories in the U.S. rose 4.7 million barrels in the week ending May 17 to miss the market expectation for a draw of 600K barrels. Commenting on the day, "It's at the extreme end of the range of possibilities for a bearish report. It's about as bad as it could have been considering the fact that driving season is so close," Bob Yawger, director of futures at Mizuho in New York, told Reuters.
Meanwhile, Treasury Secretary Mnuchin today told reporters that he didn't have any plans to travel to China for the next round of trade talks yet, suggesting that the trade dispute is unlikely to be resolved anytime soon and reminding investors of its potential negative impact on the oil demand outlook.
Earlier this week, OPEC+ said that it will continue to monitor the markets ahead of the June meeting in Vienna and refrain from making any decision on the output.
Technical levels to consider
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
