WTI falls back below $81.00 as bullish momentum gets snipped.
US Crude Oil initially rallied on Friday, but quickly tumbled into familiar levels.
The EIA noted that US Crude Oil production hit fresh highs in April.
West Texas Intermediate (WTI) rallied into a fresh eight-week high on Friday as broad-market risk appetite stepped higher, but investor sentiment moderated during the US market session, dragging Crude Oil prices into a fresh low for the day. The Energy Information Administration (EIA) noted that despite a slight increase in overall fossil fuel demand, gasoline demand declined further and the US continues to see near-term highs in overall production output.
Ongoing market hopes for a summertime increase in general Crude Oil demand continue to run aground on a rocky reality as consumer demand for fossil fuels consistently undershoots market forecasts.
According to the EIA, an uptick in US Crude Oil and petroleum products rose to its highest level since December, but increases in US Crude Oil production, which also rose to December peaks at 13.25 million bpd in April, is more than enough to offset supply draws. The EIA also noted a general decline in consumer-level gasoline demand, which fell to 8.83 million bpd in April, the lowest figure since February.
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