WTI Crude oil futures failed to hold onto rally from four-year low amid expectations of comfortable global supplies and tepid equities. Equities are under some stress amid lingering concerns over stretched artificial intelligence valuations resurfaced. WTI Crude has turned down towards $55 per barrel.
Meanwhile, Crude oil inventories in the United States decreased by 1.3 million barrels during the week Ending december 12, after losing 1.8 million barrels in the week prior, according to new data from the U.S. Energy Information Administration (EIA) released on Wednesday.The decrease brings commercial stockpiles to 424.4 million barrels according to government data, which is 4% below the five-year average for this time of year.However, EIA noted further that for total motor gasoline, total inventories had increased by 4.8 million barrels, on top of the 6.4-million-barrel gain in the week prior.
Total products supplied—a proxy for U.S. oil demand—rose to an average of 20.5 million barrels per day over the last four weeks, up 0.8% compared to the same period last year. Gasoline demand averaged 8.6 million barrels per day over the last four weeks, while the distillate four-week average supplied averaged 3.7 million barrels—down 2.2 percent year over year.