Early trading today saw the WTI crude oil futures slide by 2.75% which fared a bit better than the Brent which slid down nearly 4%. The current depressing trade result was brought about by the faltering demand for crude oil as nations impose lockdowns due to the unabated spread of the coronavirus.
Iraq itself has imposed stringent measures to their lockdown initiative warning that violators can be arrested. Covid-19 cases in the country rose to 346 Wednesday. The concern for Iraq is valid considering the quality of health service system the country currently has.
WTI is also likely to experience decline in reserves after its crude inventories fell by 1.2 million barrels the previous week as last night's API report shows. Analysts expected a build of 2.8 million barrels. Data showed that gasoline and distillate stocks also fell.
On the other hand natural gas futures were up by around 1% due to reports that flows to LNG export terminals increased recently.