The weekly crude oil inventories report saw another week of buildup in oil inventories. For the week ending October 11 th , oil inventories were up 9.3 million.
The EIA also said that oil inventories were almost two percent above the five-year average. Gasoline inventories were, however, down by 2.6 million barrels for the same period. It follows a 1.2 million barrels decline from the week before.
Oil Price Bucks the Trend
Crude oil prices managed to post some modest gains despite the bearish fundamentals. Price action remains on track to test the resistance area of the 54.70 – 54.42 region. This comes as oil breaks the falling trend line.
A close above the resistance area is needed to confirm further upside gains. The next main resistance level is at the 57.87 – 57.64 region. To the downside, declines should stall near the trend line that acts as a dynamic support.
