Crude Oil Price Declines Sharply

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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