WTI trades below $58 despite larger-than-expected draw in US crude oil stocks
- OPEC cuts 2020 global oil demand growth forecast by 60,000 bpd.
- EIA reports a draw of 6.9 million barrels in US crude oil stocks.
Crude oil prices struggled to capitalize on the Energy Information Administration's (EIA) weekly oil market report and the barrel of West Texas Intermediate (WTI) continues to trade in the negative territory.
The EIA today announced that commercial crude oil inventories in the US decreased by 6.9 million barrels in the week ending September 6 compared to analysts estimates for a draw of 2.6 million barrels.
Although a larger-than-expected draw in crude oil stocks usually boosts crude oil prices, worries over a dismal global energy demand outlook didn't allow that. As of writing, the barrel of WTI was down 0.55% on the day at $57.50.
OPEC points to negative impact of economic slowdown on oil demand
In its monthly report earlier today, OPEC today said that it cut its forecast for 2020 global oil demand growth by 60,000 barrels per day to 1.08 million barrels per day citing global economic slowdown. Regarding the global oil supply, "Strong growth in non-OPEC supply in 2019-2020 highlights need for producers to support market stability to avoid potential oversupply," OPEC noted.
Technical levels to watch for