- Crude oil prices fell sharply on Tuesday, the WTI losing 1.7%.
- The worsening demand outlook amid rising coronavirus cases weighs on WTI.
- Investors await weekly data on changes in crude oil stocks from the EIA.
After starting the day strong and hitting new monthly highs on Tuesday, crude prices turned south in the second half of the day and the barrel of West Texas Intermediate (WTI) it lost 1.7% to settle at $ 62.38.
With bearish pressure remaining intact on Wednesday, WTI fell to a daily low of $ 61.62 before entering a consolidation phase. At time of writing, WTI was down 0.65% on the day at $ 62.
Focus shifts to EIA report
Reports suggesting that the US House of Representatives Judiciary Committee passed a bill that would open OPEC to antitrust lawsuits over production cuts weighed heavily on crude prices.
In addition, the sharp rise in coronavirus cases in India, the world’s third-largest oil consumer behind the United States and China, reignited concerns about an uneven recovery in global energy demand.
Meanwhile, weekly data released by the American Petroleum Institute (API) on Tuesday showed that crude inventories in the United States increased by 436,000 barrels. Later in the session, crude oil stock change data from the US Energy Information Administration for the week ending April 16 will be analyzed for further momentum.