- WTI crude oil trades around $25 after the EIA oil stocks report.
- Concerns about a slow recovery on global demand are weighing on oil prices.
- WTI prices drop nearly 10% on the day after a 50% rally over the previous six days.
WTI crude oil prices remain steady near the $25 area after the EIA crude oil stocks data reported a shorter than expected rise on US supplies. West Texas oil futures contracts have peaked at $28 earlier on Wednesday to correct towards $25 area to end a six-day rally.
Demand concerns remain weighing on prices
The US Energy Information Administration has reported an inventory increase of 4.6 million barrels in the week of May the 1st, well below the market expectations of 7.1 million. This reading, however, has failed to ease concerns about an oil glut, as macroeconomic data keep showing that global demand will not return to pre-crisis levels any time soon.
WTI oil prices are on track to a 10% decline on Wednesday after having rallied around 50% over the previous six days, from $12.70 on late April to the highest price in nearly a month at 27.95.
Likewise, the UK Brent prices are pulling back from a multi-week high at $32.12 following a rally from levels below $20 on the last week of April.
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