WTI Oil's reversal extends below $63.00 on concerns about demand

• Crude prices drop below $63.00 amid ongoing concerns about an oversupply.
• Investors' fears of an economic slowdown in the US have outweighed the Federal Reserve's dovish turn.
• WTI prices are 18% below July highs and n20% below mid-January highs.

Crude Oil is trading lower for the third consecutive day on Friday, as investors remain wary about an Oil glut amid the weak outlook for global demand. The US Benchmark WTI has retreated below $63.00 on Friday's European session, after peaking at $64.40 earlier this week.
The rate cut announced by the Federal Reserve and its dovish stance have failed to ease investors' fears that the weaker global demand, coupled with the steady output hikes by producing countries, will lead to an oversupply in the mid-term.

EIS Oil Stock's plunge was ignored by the market

The market also shrugged off a sharp decline in US EIA Oil stocks, which dropped by 9,285 million barrels in the week of September 12, beating expectations of a 1.5 million barrel decline, and following a 3.93 M buildup in the previous week.

The increase in distillate inventories, up by 4 million barrels in the second week of September, and beating expectations of a 1 million increase, keeps market concerns about the demand of the world's major Oil consumers alive.

From a wider perspective, WTI Oil prices have been trading between $61.36 and $65.60 since early August, when the deterioration of the US labour market became evident. WTI prices are 18% lower than July highs and about 20% below mid-January highs.