Last data from API has shown us the crude stockpiles increased 4.85 million barrels last week, while stockpiles at the key storage hub grew by 2.37 million barrels.
“If confirmed tomorrow, this continues to show very adequate supplies and likely continues to limit any price upside,”
said Kyle Cooper, a consultant at Ion Energy Group in Houston.
So what will happen if the crude stockpiles keep building up?
As per U.S. EIA, inventory builds for three out of the last four weeks of data.
That’s a strong bearish indicator since drawdowns of stockpiles normally happen this time of year.
On the other hand the ongoing trade dispute between U.S. and China will hurt fuel demand.
Other important factor is the upcoming meeting between OPEC tomorrow at 13.00 (GMT +2), where we’ll see if the group will continue to reduce oil output.