Crude oil prices fell 4.5% on Thursday. The declines came as data showed that US inventories of crude oil were high. The US Energy Information Administration (EIA) reported that crude oil stockpiles fell just 282,000 barrels last week compared to the forecasts of a drawdown of 1 million bpd. Meanwhile, an oil tanker with Iran crude oil left the shores heading for China, further putting the US and China to a standoff.
Crude Oil Breaks Past Support – What’s Next?
Oil prices fell sharply breaking the support level at 57.50. This led price to test a fresh two-month low as WTI crude oil closed at $56.43. Any pullback in the near term could see the 57.50 level acting as resistance. To the downside, crude oil prices could now extend the declines to the $50.00 handle. However, this will be left to be seen if the resistance can be established at $57.50.
