WTI Crude Daily Update for August 25, 2016

Crude oil prices dropped on Wednesday following larger than expected builds in crude oil inventories reported by both the Department of Energy and the American Petroleum Institute.  Brent crude prices were also lower on the day. Prices fell to support levels near the 10-day moving average at 46.73.  Resistance is seen near the August highs at 49.35. Momentum has turned negative as the MACD trajectory turned negative despite a reading from the index that is in positive territory.

U.S. commercial crude oil inventories increased by 2.5 million barrels from the previous week, compared to expectations of a 0.5-million-barrel increase. Gasoline inventories remained unchanged last week, and while most analysts expected a small draw. Distillate fuel inventories increased by 0.1 million barrels last week and are near the upper limit of the average range for this time of year.