International Oil Prices Rise Again WTI Up 10%... "US Crude Oil Inventory Increase Lower Than Expected"

[Asia Economy Reporter Naju-seok] International oil prices are rising on the 29th. This is due to the fact that the increase in U.S. crude oil inventories was not as large as initially expected by the market.

West Texas Intermediate (WTI) crude oil for June delivery was trading at $13.66 per barrel as of 2 PM Korean time, up 10.7% ($1.32) from the previous trading day. Brent crude oil was also trading higher at $21.08 per barrel, up 3% ($0.62).

According to CNBC and other broadcasters, the rise in oil prices is due to the American Petroleum Institute (API) reporting that U.S. crude oil inventories increased by 10 million barrels as of the 24th, which was below market expectations. Experts had predicted an increase of 10.6 million barrels.

The international crude oil market is currently facing concerns over oversupply, with worries that the tank top for inventory capacity will be reached within weeks. The slower-than-expected pace of inventory buildup has acted as a positive factor.

However, with crude oil demand not increasing rapidly due to the novel coronavirus disease (COVID-19), supply-demand adjustment depends on reducing supply, but the slow pace of production cuts means concerns over oversupply remain significant.

This content was produced with the assistance of AI translation services.