WTI Crude Oil Slips To $25.30 – Increase in US Inventories Weighs

The U.S. oil is trading at 26.04 within a symmetric triangle pattern which is providing tripe top resistance at 26.70 along with support at

Arslan Butt•Wednesday, May 13, 2020•1 min read

WTI Crude Oil Slips To $25.30 - Increase in US Inventories Weighs

Today in the Asian trading session, WTI crude oil prices dropped to $25.30, mainly due to the price-positive API data, which showed a rise in US crude inventories. Additionally, tensions about a potential second wave of coronavirus cases after countries started to ease lockdowns also keeps oil prices under pressure. Moreover, China’s war with the US and Australia also weighed down on the oil market. At this moment, WTI crude oil is currently trading at 25.36 and consolidating in the range between 25.07 and 25.79.

At the data front, the weekly release of private inventory data from the American Petroleum Institute (API) revealed a build of 7.64 million barrels against the previous addition of 8.44 million barrels into the stockpiles.

The reason for recent support in the oil prices could be attributed to the further call by Saudi Arabia for larger production cuts to balance the market caused by virus-induced demand destruction. The recent optimism surrounding reopening of major economies is also supporting oil prices.

On the other hand, the United States began once again to report the new cases of coronavirus after easing lockdown restrictions and reopening non-essential businesses in US states, as per the former FDA Commissioner Dr. Scott Gottlieb. Whereas, China and South Korea are also struggling to control second wave outbreaks that spread during the weekend, with South Korea reporting 26 new cases on May 12. As a result, the oil demand could face further crisis ahead.

WTI Crude Oil Slips To $25.30 - Increase in US Inventories Weighs

Support Resistance

24.59 26.6

23.4 27.42

22.58 28.61

Pivot Point 25.41

US OIL

US oil is trading at 26.04 within a symmetric triangle pattern which is providing tripe top resistance at 26.70 along with support at 25.10 and 24.10. While bullish breakout of 26.70 may lead WTI prices towards 27.30. Good luck!

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.