Crude Oil Slips Over Swelling US Stockpiles – EIA Report Ahead

On Wednesday, WTI crude oil prices slipped to $63.08 after a rise in the API crude inventories. At the same time, the escalating crisis in Venezuela and stiffened US sanctions on Iran added additional uncertainty to markets.

The trading activity is thin as May 1 is a holiday in many markets.  According to the American Petroleum Institute (API), the API crude stocks grew by 6.8 million barrels to 466.4 million barrels on Tuesday.

For now, the movement in crude oil is heavily dependent upon the release of the EIA report. As per economists forecast, EIA is expected to report a build of 1.3M vs. 5.5M beforehand. But the API report is increasing odds of higher inventories’ figure from EIA. Anyway, all we can do is wait.

Technically speaking, crude oil is facing support above $63, and below this, $62.50 is likely to extend additional support. On the upper side, $64, $64.45 and $64.85 are expected to act as resistance today.

Considering the low trading volume and liquidity, I’m looking to stay out of the market until the release of news as EIA may drive some price action in WTI crude oil today.

Good luck!