WTI crude oil fell over 4% to settle at $68.60 per barrel in today’s trading session. The latest numbers from the American Petroleum Institute indicate oil inventories in the U.S. decreased by 3.9 million barrels during the week ended April 28.
Additionally, the Energy Information Administration (EIA) released its weekly Crude Oil Inventories report, which measures the weekly change in the number of barrels of commercial crude oil held by U.S. firms. Compared to last week, inventories fell by 1.28 million barrels. For reference, economists were expecting a decrease of 1.1 million barrels week-over-week. This means that demand was stronger than anticipated.
Nevertheless, the energy sector remains under pressure due to declining manufacturing activity in China coupled with banking woes in the U.S. Furthermore, the Federal Reserve raised interest rates again today, which heightens the risk of recession.
Moreover, natural gas slipped roughly 2% to close at $2.17 per MMBtu but still remains firmly above the $2 support level. After falling 5.2% yesterday, the United States Oil Fund ETF (USO) is down a further 3.67% at the time of writing.
Here is a list of energy stocks that can be influenced by the latest developments in the energy markets.
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