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Crude Oil Price Drops On Expected Higher Inventories

Brent Crude Oil Calm Ahead of US Oil Rig Count Data
Brent Crude Oil Calm Ahead of US Oil Rig Count Data

Crude oil dropped below $55 on expectations of rising inventories at an important pricing hub in Oklahoma. The price found support at the descending trend line and the 200 MA.

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It has been reported this morning that oil inventories, at the Cushing storage hub, expanded last week, pointing towards lower demand.

“There are expectations that we will see another big build in Cushing,” said Olivier Jakob, managing director at Petromatrix GmbH.

On the technical side, Crude oil price has moved well below the 100 DMA at $55.80. Compared to yesterday’s high, crude oil lost 4% in value.

The price has found support at the broken descending trend line, in addition to 200 MA on an hourly chart. However, the bears seem to be determined to push the price below this support zone.Download our latest quarterly market outlook for our longer-term trade ideas.

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