WTI plunges to near $75.0 following a larger increase in US Crude Oil Stockpiles

• WTI price loses ground larger-than-expected US oil inventories.
• US EIA Crude Oil Stocks Change rose by 12.018 million barrels to 439.5 million barrels.
• Crude oil prices face challenges as IEA downward revised forecast of the global oil demand growth.

West Texas Intermediate (WTI) Crude oil price declined following a larger-than-anticipated increase in US Crude Oil Stockpiles, which raised concerns about the demand outlook in the United States (US), the world's largest consumer of Crude oil products. As a result, the WTI price extended its losses, reaching around $75.90 per barrel during the European trading session on Thursday.

US Energy Information Administration showed that Crude Oil Stocks Change rose by 12.018 million barrels to 439.5 million barrels for the week ending on February 9. The market was expecting an increase of 2.56 million barrels against the previous change of 5.521 million barrels.

Crude oil prices are under pressure following the International Energy Agency's (IEA) downward revision of the global oil demand growth forecast for 2024 in its latest monthly oil market report released on Thursday. The forecast for 2024 global oil demand growth has been reduced to 1.22 million barrels per day (bpd), down from the previous estimate of 1.24 million bpd.

The slowdown in global oil demand growth could be attributed in part to developments in China. The report highlights a tightening of oil market balances in January, primarily due to supply disruptions in the United States and Canada. Despite ongoing cuts by OPEC+ nations, the IEA expects a slight build in inventories in the first quarter of the year.

Kazakhstan and Iraq have committed to addressing their oil overproduction over the next four months, aligning with their, Organization of the Petroleum Exporting Countries and its allies (OPEC+), agreements for voluntary cuts. Analysts at ANZ noted on Thursday that attention is turning towards the upcoming March meeting of the OPEC+ will deliberate on whether to extend output curbs.