WTI Crude oil prices extended the declines on Thursday, slipping to a fresh 5-month low. The declines came as the EIA’s report for the crude oil inventories saw an increase of 6.77 million barrels per day last week. This was higher than the median forecasts of a 2 million decline. The US crude oil inventories have been rising dramatically over the past few weeks adding to the downside pressure on prices.
Will oil continue to trend lower?
Following the breakdown below 52.74, oil prices touched down to a fresh five-month low before pulling back modestly. However, the downside pressure is likely to remain as price could test the 50.00 handle. A test of the psychologically strong 50.00 level for support could indicate the completion in the correction. We expect to see oil prices reversing the declines from this level.
