Crude oil prices continued to tumble following a larger than expected build in crude oil inventories report on Thursday by the Department of energy.
Crude oil prices continued to tumble following a larger than expected build in crude oil inventories report on Thursday by the Department of energy. According to the EIA, crude oil stocks increased by 4.2 million barrels from the previous week. This compares to the small draw expected and the 6.2 million barrel build reported by the API on Tuesday. Gasoline inventories decreased by 2.1 million barrelslast week, and distillate fuelinventories increased by 0.4 million barrels last week.
Crude oil prices sliced through former support now resistance at 42.59. The next level of target support for crude is seen near the August lows at 37.75. Momentum remains negative as the MACD (moving average convergence divergence), which is a momentum indictor, prints in the red after recently generating a sell signal. The RSI (relative strength index) which is a momentum oscillator, also took out support reflecting accelerating negative momentum.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.