Oil Prices $3 Down After EIA Inventory Build, Failing at $80

After WTI crude dropped to its lowest level of the year early last week during a global market downturn, oil prices found some support as escalating tensions in the Middle East fueled concerns over potential disruptions in oil production, driving WTI up by $8 over five days. The surge continued on Monday as the U.S. sent more troops to the Middle East, pushing WTI above $80. However, the climb was halted by the 100-day SMA (green), leading to a sharp decline in crude oil prices over the next two days.

Yesterday, oil prices reversed Monday’s significant gains, ending the day $2 lower. Although fears of conflict in the Middle East had driven crude to its highest level since July 22, renewed global economic worries pulled prices back to where they started for the week. Additionally, U.S. crude oil stocks increased for the first time in seven weeks, contrary to expectations of a 1.2 million barrel decline, according to data released Wednesday by the U.S. Energy Information Administration. As a result, WTI crude ended the day at $77 lows, which point to futher declines toward last weeks low at least.

US WTI Crude Oil Chart Daily – Buyers Failed at the 100 SMA

EIA Weekly Crude Oil Inventories

• EIA Weekly Crude Oil Inventories: +1,357K barrels vs. -2,200K expected
  • Previous: -3,728K barrels
• Gasoline Inventories: -2,894K barrels vs. -1,434K barrels expected
• Distillates Inventories: -1,673K barrels vs. -636K barrels expected
• Refinery Utilization: +1.0% vs. +0.1% expected
• Production: 13.3 mbpd vs. 13.4 mbpd prior

Private API Oil Inventory Data from Yesterday:

• Crude: -5,205K barrels
• Gasoline: -3,689K barrels
• Distillates: +612K barrels

WTI Crude Oil Live Chart