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.
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
