The Asian session witnessed a decline in oil benchmark prices, which is said to be caused by the EIA report about unexpected oil reserve upturn in the USA.
On Thursday, the futures for Bernt oil dropped to $70.42/bbl ($70.48/bbl earlier), while WTI futures weakened to some $60.99/bbl ($61.03/bbl).
The oil market recorded a 3% price softening in the middle of the week once the US Energy Information Administration reported higher oil reserves. The volumes increased by 4.7 million bbl, which hit the market as the analysts anticipated opposite development – a decline of 600,000 bbl.
For reference, oil reserves hiked by 5.4 million bbl last week.
Along with the oil volumes, the reserves of petroleum and distillates also went up reflecting slack final demand.
One of the market experts noted that high reserves and slower demand could be considered as signs of persisting pressure on prices.
According to some opinions, quotes show a restrained decline on observed tensions between Washington and Tehran as well as limited supplies by OPEC members. However, the market is still focused on the US-China trade war. In this area, the agreement between the countries got even less possible once Steven Mnuchin, US Finance Minister, stated to the media that the visit to Beijing was yet to be scheduled.
Notably, China has reportedly revised economic relations with the USA considering measures against Huawei.