Energy Preview: WTI crude oil slumps back under $60 per barrel

WTI crude oil futures are extending decline on Friday morning in Asia following a near 5% slump in the previous session. Concerns over a potential US military strike on Iran eased as President Trump on Wednesday softened his earlier threats of military action in Iran. Meanwhile, crude oil inventories in the United States increased by 3.4 million barrels during the week ending January 14, according to new data from the U.S. Energy Information Administration (EIA) released on Wednesday. The decrease brings commercial stockpiles to 422.4 million barrels according to government data, which is 3% below the five-year average for this time of year. EIA noted that the total products supplied?a proxy for U.S. oil demand?came in at 20 million barrels per day over the last four weeks, down 1.1% compared to the same period last year. Gasoline demand averaged 8.5 million barrels per day over the last four weeks, while the distillate four-week average supplied averaged 3.7 million barrels?rising 2.2 percent year over year. Total commercial petroleum inventories increased by 6.2 million barrels last week.

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