Strong US dollar and weak global demand drag crude oil prices to a 2-week low

Crude oil prices are trading at 2-week low levels. Even after the prices were down 3 percent on Tuesday and 6 percent on Monday, the Asian markets have seen some buying coming.

The strength in the US dollar and the weak global demand continue to weigh and the markets also are reacting to the US inventories, which increased.

The Europe refiners and oil products stock, while at 1 billion barrels per day levels, is still 10 percent lower on a year-on-year (YoY) basis.

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Markets are looking at European Union (EU) and Japan which have agreed to pay some but the Street is still awaiting the timeline details.

According to Energy Information Administration (EIA), the US crude production for this year is expected to be lower than what they had estimated earlier. So it has been revised down from 12 million barrels per day to 11.9 million barrels per day.

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It is going to be a choppy move continuing for the crude oil prices especially ahead of the US inflation data which will be released today.