12 October, OctaFX – The price of crude oil continued the decline started on Wednesday following data from the Energy Information Administration (EIA). On Wednesday, data from the American Petroleum Institute (API) showed an inventory build-up of more than 9.75 million barrels.
EIA Inventory Data
This was higher than the expected 2.6 million barrels. Yesterday, the EIA released inventory data that missed analysts’ forecasts. Crude oil inventories reached 5.65 million barrels, which was higher than the 2.62 million barrels that traders were expecting.
Data came a few hours after OPEC lowered the demand for crude oil. In previous months, the price of crude oil has moved up as traders anticipate a reduction of demand as the US imposes sanctions on Iran.
Brent Crude Oil Price Declines
Last week, the price of Brent reached a record high of $76.76 as traders placed their hopes on Iran sanctions. This week, the price declined sharply and today, it reached a low of $70.35. This was after the increase in inventories.
Today’s low was along the 50% Fibonacci Retracement level. It was also along the important psychological level of $70. The price is currently along the lower band of the Bollinger Bands and is likely to continue to move lower.
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