If EIA Data Is Weak, Oil Prices Can Fall Badly!

 As the crude oil market continues to be under pressure due to concerns over weak global demand, reports of increased US crude oil supply have added to the pressure on black commodity trading.

Most recently, the American Petroleum Institute (API) reported an increase of 691,000 barrels in U.S. crude oil inventory last week after seeing a 9.5 million barrel drop in the previous week.

Oil prices continue to be under pressure following the increase in coronavirus cases in Europe which leads to the possibility of more restrictions being imposed and affecting world economic activity.

UK Prime Minister Boris Johnson announced new restrictions that could be enforced for up to 6 months, in which citizens are encouraged to work from home, impose penalties for not wearing masks, or gathering in groups of more than 6 people.

Concerns over world oil demand continue to rise following the return of Libyan oil production to the market. National Oil Company expects Libya's crude oil production to increase by over 1/4 million barrels a day next week.

US WTI crude futures traded down 35 cents to $ 39.45 a barrel, while Brent crude declined at $ 41.41 a barrel.

If the data by the Energy Information Administration (EIA) tonight is also weak, the two oil benchmarks may fall lower.