WTI declines below $61.00 as US stockpile builds, Venezuelan exports resume
WTI price drifts lower to near $60.70 in Wednesday’s Asian session.
Large builds in US crude inventories weigh on the WTI price.
Trump promised Iranian protesters that help is on the way.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $60.70 during the Asian trading hours on Wednesday. The WTI price declines as Venezuela resumes exports and the American Petroleum Institute (API) shows a big build in US crude inventories. Traders brace for the Energy Information Administration (EIA) crude oil stockpiles report on Wednesday.
Reuters reported on Tuesday that Venezuela has begun reversing oil production cuts made under a US oil embargo, as crude exports are also resuming. The source said two supertankers left Venezuelan seas on Monday, carrying around 1.8 million barrels of crude oil each, in what might be the first shipments of a 50-million-barrel supply agreement between Caracas and Washington to restart exports after the US capture of Venezuelan President Nicolas Maduro.
US crude inventories are experiencing a big build in US crude inventories. According to the US API weekly report, crude oil stockpiles in the US for the week ending January 9 rose by 5.27 million barrels, compared to a fall of 2.8 million barrels in the previous week. The market consensus estimated that stocks would decline by 2.0 million barrels.
Nonetheless, ongoing tensions in Iran, a major crude oil producer, could boost the WTI price. US President Donald Trump canceled all meetings with Iranian officials and promised protesters that help is on the way. The Islamic Republic's security forces have cracked down on large-scale protests, killing hundreds, according to reports. Trump has frequently threatened to intervene if the government kills protestors.
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