OIL FAILS TO HOLD ABOVE $40 AMID RISE IN US CRUDE INVENTORIES | FOREX RECOMMENDATIONS
Crude oil prices turned lower on fresh oversupply concerns among investors’ after US Crude inventories increased to a record high level. The government-backed EIA on late Wednesday reported a surprise drawdown in US crude inventories by 5.72 million barrels for the week than ended on June 5, which came much higher than the market expectations of 1.7 million barrels. The recent rise in inventories indicated of weak crude demand, despite easing of lockdowns which spurred another dip in crude prices. Adding to the already bleak sentiment, Fed presented a gloomy assessment of US road to recovery and said that pandemic could have long lasting impact on US economy. He mentioned that central bank will possibly keep the interest rates near zero for coming few years, and downgraded US GDP numbers by 6.5% for 2020. The dour assessment by Fed weighed on market sentiment and laid investors to book profits near 3-month high level. As of this moment, US WTI is trading 1.8% lower at $38.44 per b