Upbeat Crude Oil Inventories Report May Further Dampen Crude Oil Price

A better-than-expected US crude oil inventories report could further dampen crude oil prices which are already trading lower on the day. The EIA crude inventories report showed an addition of 2.412 million barrels of crude oil to US stockpiles, as against the market consensus of a drop of 0.214 million.

WTI crude oil price has retreated further to $56.14 as at the time of writing, after touching off intraday lows of $55.75.

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Outlook for Crude Oil Prices

On the back of the crude oil inventories data, WTI crude oil price has extended below the 38.2% Fibonacci level intraday support. It needs to close by a 1% penetration below the ascending support trendline to attain further downside traction.

If this is achieved, attainment of the 23.6% Fibonacci level (54.20) will be on the cards. Below this level, support comes in around 52.45.

Failure to close below the ascending trendline could cause a pullback to 58.50 or 60.2. Above 60.26, the near-term bearish sentiment would be invalidated.

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WTI crude oil price chart

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