Crude oil prices were a bit volatile on Wednesday. The Energy Information Administration’s weekly crude oil inventory report showed a drawdown of 10.8 million bpd. This was larger than forecasts. Yet, oil prices ignored the report as they closed in the red by Wednesday.
Oil Likely to Extend Declines to 54.42 Support
The reversal in oil prices met with the resistance area of 57.50. As a result, oil prices failed to breakout higher above this level. The declines we see could eventually settle near the minor support that is at 54.42 level. As long as this support holds, oil prices could remain caught within the range.
