WTI Crude oil futures slipped under $54 per barrel and edged up as the equities witnessed some recovery on hopes that China may announce more support to spur economy. MCX Crude oil futures saw a heavy volatility and closed around Rs 3900 per barrel mark after topping out above Rs 4070 per barrel mark. The US Energy Information Administration reported a 1.6-million-barrel build in crude oil inventories for the week to August 9. This followed a rise of 2.4 million barrels for the previous week. At 440.5 million barrels, the US crude oil inventories were about 3% above the five-year average for this time of year.

Oil is expected to run into resistance on rallies in near term Crude oil futures continue to see selling pressure on demand worries. Broad concerns over the health of the global economy, marked by the US-China trade dispute, forced the International Energy Agency (IEA) to cut lower its growth forecast for global crude oil demand for this year and next. There have been concerns about the health of the global economy expressed in recent editions of this report and shown by reduced expectations for oil demand growth, the agency said in a monthly update. The IEA trimmed its estimates for growth in global oil demand for this year by 0.1 million barrels per day to 1.1 mbd. For 2020, growth is estimated to be slightly down, by 50,000 barrels per day to 1.3 mbd.

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