Oil ignores extended decline in API barrel counts

WTI backslid to $81.00 as energy market concerns weigh heavy. API reported a second, albeit smaller drawdown in US Crude Oil supplies.

the Chinese demand remains lower than expected in 2024, risk bid from Beryl evaporates. West Texas Intermediate (WTI) US Crude Oil extended a near term decline on Tuesday, falling to $81.00 per barrel as American Crude Oil markets continue to struggle to find consistent bullish momentum.

Crude Oil prices remain tepid to soft on Tuesday as US Distillate Stocks, Crude Oil derivatives primarily used for diesel and home heating and cooling production bounced 2.3 million and entirely missing the forecast decline of -740K drawdown.

Chinese demand continues to undershoot broad market expectations for overall upticks in Asian fossil fuel usage. Crude Oil bullish momentum that hinged on an uptick of demand earlier in the year has thus far not born fruit.

The American Petroleum Institute (API) reported another week-on-week decline in US Weekly Crude Oil Stock for the week ended July 5. According to the API, US weekly barrel counts fell by another 1.9 million, adding to the previous week’s sharp decline of 9.163 million and undershooting the forecast -250K barrel drawdown.

Tropical Storm Beryl, which was downgraded from a category 1 hurricane, also failed to disrupt US Crude Oil markets as much as barrel traders had initially feared, kicking the legs out from underneath a near-term bullish push and keeping WTI bids pinned on the low side.