Crude oil prices continued their decline on Wednesday. The Energy Information Administration reported a surprise build up in oil inventories. US Crude oil stockpiles rose 2.4 million barrels in the week ending August 2nd. This was in contrast to the expectations of a drawdown in inventory. The report came after the API showed a weekly decline in oil inventories of 3.4 million barrels.
Oil Breaks Below 51.70. Is 50 the Next Target?
The surprise build-up in the crude oil inventory sent oil prices slower by Wednesday’s close. Price fell below the 51.70 handle which was the initial downside target. However, with price now consolidating near this level, there is scope for oil prices to test the psychological level of 50 a barrel.
