WTI Crude oil futures dipped lower on Wednesday, the third straight day and slightly edge up on Thursday morning after U.S. crude production rose to its highest in over two years.
According to EIA reports – crude stockpiles fell by more than expected last week and was unsuccessful to balance fear over a rise in production.
The crude inventories fell for the seventh straight week as it fell by 8.9m barrels roughly in the week ended Aug 11, but the expected draw was only 3m barrels.
Technical Outlook
The daily chart has formed Megaphone chart pattern as prices failed to hold above resistance line at $50. The current prices closed below 200 day moving average which indicates negative momentum.
Bearish movement can be expected. This is a sign of caution that the market may soon reverse downside target towards $45.50.