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27 Jan 2016
Oil more than -5% off highs on huge inventory build up
FXStreet (Bali) - Oil futures are trading more than -5% off its highs, last at $30.5 from a high of $32.40, following a huge build up in inventories in the US. The decline precedes a steady recovery on Tuesday, which saw Oil bounced hard off sub $30.
API crude oil inventories: Huge build up
After the NY close, the American Petroleum Institute (API) announced that crude oil inventories was up by 11.4 million bbls from 4.6 million bbls previous. Meanwhile, crude stocks at Cushing fell by 664K barrels. The data is yet another piece of evidence that oversupply has become a major issue for producers, with storage capacity being used to to its fullest.
Oil key levels
Looking at the key levels, further falls in Oil may expose once again the $30 level ahead of $29.50 and $29.25, which happens to be yesterday's lowest point. On the upside, the vacuum created on the last API-led decline allows any price recovery not to face any major hurdle until the $32.00 area, up to $33.00, which remains a hard nut to crack judging by the latest failed attempts.
API crude oil inventories: Huge build up
After the NY close, the American Petroleum Institute (API) announced that crude oil inventories was up by 11.4 million bbls from 4.6 million bbls previous. Meanwhile, crude stocks at Cushing fell by 664K barrels. The data is yet another piece of evidence that oversupply has become a major issue for producers, with storage capacity being used to to its fullest.
Oil key levels
Looking at the key levels, further falls in Oil may expose once again the $30 level ahead of $29.50 and $29.25, which happens to be yesterday's lowest point. On the upside, the vacuum created on the last API-led decline allows any price recovery not to face any major hurdle until the $32.00 area, up to $33.00, which remains a hard nut to crack judging by the latest failed attempts.