Oil prices are down slightly in Wednesday trade. West Texas Intermediate oil for October delivery is trading at $57.58 in the North American session, down 0.50% on the day. On Tuesday, crude touched a high of $58.77, its highest level since July 16. However, crude was unable to consolidate and has slipped to the mid-57 region.
Decline Expected in U.S. Crude Inventories
U.S. crude inventories continue to report declines, which has put upward pressure on oil prices. Last week, crude jumped 2.9%, after the Energy Information Administration (EIA) reported that crude inventories fell by 4.8 million barrels, a much stronger decline than the estimate of a decline of 2.8 million. U.S. stockpiles have now fallen for three straight weeks. Later on Wednesday, the EIA releases its weekly report. The forecast is for another decline of 2.7 million. If the estimate is within expectations, there is a strong chance of oil prices moving higher in response.