Crude oil continues slump despite inventory contraction
|- Inventory drawdown surprise failed to halt decline.
- Demand failing to keep up with oversupply.
Crude oil was unable to hold itself up following Wednesday trading and has slid further with WTI testing 61.00 per barrel after dipping to 60.74.
API crude oil inventories provided temporary solace for oil prices after showing a surprise contraction in oil stores of 900,000 barrels, a welcome miss from the anticipated million barrel surplus traders were anticipating. The buoyancy was shortlived, and oil prices have resumed slumping heading into the London market session.
As American oil supply continues near record levels and OPEC struggles to stem production in the face of a massive supply glut, oil prices will continue to be biased towards the downside, as upticks in demand for fossil fuels are still unable to eat up the record pileups in crude stocks.
Crude Technicals
Crude prices are remarkably off their 2018 highs and the recent retracements were shortlived following Brent's bounce from 62.00 and WTI's 58.11 low. Support is priced in for WTI and Brent at 59.70 and 63.15 respectively, while WTI resistance prices in at 62.60 and Brent sees resistance at 65.80.
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