West Texas Intermediate (WTI) futures were seen trading lower on Wednesday, following the general trend on commodity as global supplies still provide strong pressure and demand does not provide enough strength to boost prices higher. We can see only short term increase due to correction or regional news but lifted Saudi production only adds to already elevated output of Russia and United States. Moreover, China with slower rise of economy and only stable filling of Strategic Petroleum Reserves (SPR) seems to be lagging on demand side of the market as well. The wolrd’s No. 2 importer showed crude oil imports growing 4.5% during first two months of this year, but stil daily imports rose in slower pace as in December (6.7m bpd vs 7.15m bpd in Dec). Sinopec sales executives told Reuters that diesel demand is expected to decline during first quarter of this year. Now we can see oil trading near $47 a barrel, still unable to rise steadily above $50 a barrel. Today market will focus on US data from the Energy Information Administration, expecting an increase of crude oil inventories.
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