WTI crude oil prices failed to capitalize on the gains from Tuesday as it slipped close to 0.95% yesterday. The EIA’s weekly crude oil inventory report showed a draw of 1.4 million barrels. This was against the estimates of a 1.6 million build up. Tuesday’s API inventories already signaled a draw in the inventories earlier this week which pushed oil prices higher on Tuesday.
Can Oil Decline Further?
The reversal in crude oil comes as price initially rallied to test the previous highs near 64.55. However, failure to gain traction led to oil prices giving up Tuesday’s gains. Crude oil prices seem to have settled within the range of 64.55 and 63.20. A breakout from this range is needed to establish further direction in the commodity.