The weekly crude oil inventory report from the US Energy Information Administration showed a strong build-up. For the week ending February 8th, crude oil inventory rose 7.5 million barrels. This was slightly higher than the API’s report of a 6 million build in inventory. WTI crude oil prices, however, brushed aside the report to post some modest gains.
WTI Crude Oil Looks to be Forming a Bottom
Crude oil prices are likely forming a bottom following a modest rebound. However, the declines are still not out of the woods. Oil prices are trading at 51.65 resistance level. Only a breakout above this level can confirm a corrective move in price. In the short term, WTI crude oil could remain range-bound within the 51.65 and 50.00 regions.
