WTI Crude oil prices continued their declines as price plunged over 2% on the day on Wednesday. The declines in oil prices came amid weakening demand. Weekly inventory data from the EIA saw US stockpiles rising by 2.2 million barrels. Adding to the build-up in the inventories, other reports indicate that freight volumes were significantly lower compared to the year before.
WTI on Track to Test $50.00 Psychological Support
The declines in crude oil prices saw price crashing below the temporary support formed at 51.70. The strong bearish close below this level indicates that oil prices could soon be testing the $50.00 level of psychological support. We expect the declines to stall here temporarily. OPEC members and Russia will be meeting in a few weeks which could bring some additional volatility to the oil markets.
