Oil ducks on US supplies buildup, WTI back under $67
|- Crude backing down as barrel counts on the rise.
- Further fuel reserves figures are due later today, and a continued rise will see crude take another step down.
Crude oil prices have taken a step back down after another unexpected buildup in US reserves, taking WTI barrels back beneath 67.00.
US crude inventories rose by another 3.7 million barrels, bringing the total to 410.8 million barrels of excess supply according to the American Petroleum Institute (API), and as the US continues to pump more oil than they know what to do with declines in the OECD's leading indicators are warning of a potential slowdown in crude demand, further pressures oil prices to the downside.
The OECD's leading composite indicator peaked in January but slipped below-trend through June, raising warnings that an economic downturn could be around the corner, which poses a significant threat to current oil demand volumes, and barrel traders will be hoping for a positive read from the Energy Information Administration's (EIA) fuels inventories data due later Wednesday.
WTI levels to watch
With WTI barrels testing into 66.70, support is seen at recent swing lows of 66.30 and 65.70, and the last peak at 68.30, further resistance is seen at August's peak of 69.90, though the rising possibility of further crude buildup will see barrel prices continue to sink as reserve counts rise over time.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.