WTI slumps below $58 after EIA reports smaller-than-expected draw in crude oil stocks

  • EIA says crude oil inventories in the U.S. decreased by 0.3 million barrels.
  • Trade war worries continue to hurt commodities.
  • Russia's oil output decreases in May.

Crude oil prices came under a renewed selling pressure in the NA session after the weekly data published by the U.S. Energy Administration Information showed a smaller than expected draw in stockpiles. As of writing, the barrel of West Texas Intermediate was down 2% on a daily basis at $57.90.

The EIA today said crude oil inventories decreased by 0.3 million barrels during the week ending May 24 compared to analysts' forecast for a decrease of 0.8 million barrels. 

Earlier in the day, Reuters reported that Russia's oil output fell to 11.12 million barrels per day on average for May 1-29 from 11.23 million barrels in April to reflect the negative impact of the contamination in the Druzhba pipeline and helped the WTI recover toward the $60 mark. 

Nevertheless, the overreaction to the EIA data today suggests that corrections remain technical and investors are looking for the next opportunity to resume the selloff especially with none of the latest headlines helping the U.S.-China trade fears ease and improve the demand outlook. "An escalating U.S.-China trade war represents a risk to oil markets," Bernstein Energy told Reuters on Thursday after a senior Chinese diplomat accused the Trump administration of "naked economic terrorism."

Technical levels to consider


Today last price 57.74
Today Daily Change -1.38
Today Daily Change % -2.33
Today daily open 59.12
Daily SMA20 61.31
Daily SMA50 62.27
Daily SMA100 58.75
Daily SMA200 59.81
Previous Daily High 59.18
Previous Daily Low 57.01
Previous Weekly High 63.97
Previous Weekly Low 57.36
Previous Monthly High 66.57
Previous Monthly Low 60.23
Daily Fibonacci 38.2% 57.84
Daily Fibonacci 61.8% 58.35
Daily Pivot Point S1 57.69
Daily Pivot Point S2 56.27
Daily Pivot Point S3 55.52
Daily Pivot Point R1 59.86
Daily Pivot Point R2 60.61
Daily Pivot Point R3 62.03



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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD advances 1.10 amid upbeat trade headlines, after mixed US retail sales

EUR/USD is trading closer to 1.1050, up on the day. US Commerce Secretary Ross has expressed optimism about reaching a deal with China. The Retail Sales Control Group met expectations with 0.3%.


GBP/USD soars past 1.2900 as Farage gives additional boost to Conservatives

GBP/USD has leaped above 1.29, the highest since early November, as the Brexit Party has failed to field candidates in 43 additional seats, facilitating a victory for PM Boris Johnson.


USD/JPY clings to gains near session tops, around 108.70 post-US data

The USD/JPY pair maintained its strong bid tone near session tops and had a rather muted reaction to the mixed US economic data.


Gold looks to close week with small gains below $1,470

The precious metal struggled to find demand on Friday as the upbeat market mood on renewed hopes of the United States and China reaching a trade deal to avoid a tariff hike in December caused investors to move away from safe havens.

Gold News

Crypto Today: Playing with the thin red line

BTC/USD has fallen below $8,500 during the Asian trading session. A close below this support level would put $7,500 on the trading table. ETH/USD is moving below the 50-period exponential moving average.

Read more