Early on Thursday, the bearishness in WTI crude oil prices were progressing after the EIA announced a build in fuel inventories in the US over the previous week, adding to stresses over shortcoming in demand. At the hour of composing, WTI crude oil was trading at around $39.79 per barrel.
As indicated by the EIA report which was released on Wednesday, US gasoline stockpiles registered a 1.9 million barrel ascend during the earlier week. Economists had forecast a drop of 1.8 million barrels for the period instead. Overall supply of crude products touched 18.3 million bpd, 13% lesser than the corresponding period in 2019, uncovering the weakness in demand.
The outlook for crude oil stays distressing, even as the number of Covid cases rise across Europe and North America, forcing authorities to report new restrictions, which are probably going to impact demand considerably more. Furthermore, China has additionally suspended outbound travel to prevent the spread of the pandemic, which is likewise keeping oil demand under pressure.
Oil traders, for now, excitedly anticipate positive developments in the Covid relief package to offer transitory relief in the hopes that it could improve the demand for crude oil slightly. In any case, the general sentiment for oil stays bearish in the wake of the rising cases and the economic impact of the pandemic, despite different boost measures being embraced by governments in the US and around the globe.