Crude oil price declined sharply yesterday after data from the American Petroleum Institute (API) showed an increased buildup in inventories. Where is the black gold headed next?
24 October, OctaFX – The American Petroleum Institute (API) reported a huge build of 9.88 million barrels of United States crude oil inventories for the week ending October 19, compared to analyst expectations that this week would see a hefty build in crude oil inventories of 3.694 million barrels.
Oil Price Losses Mount After API Reports
Last week, the American Petroleum Institute (API) reported a surprise draw in crude oil inventories of 2.13 million barrels for the week. One day later, the Energy Information Administration reported a build instead, of 6.5 million barrels.
The API reported a draw in gasoline inventories as well for week ending October 19 in the amount of 2.8 million barrels. Analysts had predicted a draw of 1.878 million barrels for the week.
Price Of Crude Oil Declines
In the Asian session, the price of Brent declined to a low of $75.65. This was a continuation of the falling prices that started on October 8. The moving average indicators point to a more sustained decline.
This is confirmed by the RSI and Relative Vigor Index indicators as shown below. Today’s movement will be mostly influenced by the EIA data.
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