WTI Crude oil prices were pressured to the downside. The weekly inventory report from the Energy Information Administration (EIA) showed a larger than expected build-up.
For the week ending September 20, US crude oil inventories rose by 2.4 million. This compares to the 1.1 million build-up the week before.
WTI Likely to Extend Declines Further
Following the breakout from the support level of 57.50, price continued to slip. The unfilled gap from earlier this month will be potentially filled in the near term.
The next lower support is seen at the 54.42 region. If oil prices stall near this support, there is a possibility for them to rebound to the upside. But the gains will be likely to be limited below 57.50.
