- WTI price slumps to $61.45 in Thursday’s Asian session.
- The ongoing US-China trade war undermines the WTI price.
- Crude oil stockpiles in the US rose by 2.553 million barrels last week, according to the EIA.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.45 during the early Asian session on Thursday. The WTI price tumbles amid the escalating trade war between the US and China, and fears of a slowdown in economic growth and energy demand.
The renewed trade tensions raise serious questions about future oil demand, weighing on the black gold price. US President Donald Trump raised the tariff on Chinese imports to 125% on Wednesday, hours after China increased the duty on American goods to 84% on all US imports. “China’s aggressive retaliation diminishes the chances of a quick deal between the world’s two biggest economies, triggering mounting fears of economic recession across the globe,” Rystad Energy Vice President for oil markets, Ye Lin, told Reuters.
The Energy Information Administration weekly report showed crude oil stockpiles in the US for the week ending April 4 rose by 2.553 million barrels, compared to a jump of 6.165 million barrels in the previous week. The market consensus estimated that stocks would increase by 2.2 million barrels.
On the other hand, the downside for the WTI might be capped due to the Keystone oil pipeline shutdown. The Keystone oil pipeline from Canada to the US remained shut on Wednesday following an oil spill near Fort Ransom, North Dakota, while plans to return it to service were being evaluated, its operator South Bow said.
