- Crude oil prices drop to the $64.30 area post-EIA report.
- WTI keeps the leg lower unchanged so far this week.
- US crude oil inventories increased by more than 2.0 mbpd last week.
Prices of the barrel of the American reference for the sweet light crude oil are dropping further today and testing the area of weekly lows in the $64.30 zone following the latest report by the EIA.
WTI weaker on downbeat EIA
Prices of the West Texas Intermediate are prolonging the down move so far this week after the EIA reported US crude oil supplies unexpectedly rose by 2.072 mbpd during the week ended on May 25.
Furthermore, Weekly Distillate Stocks went up by 2.165 mbpd and Gasoline inventories increased by 4.603 mbpd, coming in below initial estimates.
In ddition, supplies at Cushing decreased by 0.955 mbpd, adding to last week’s 0.556 mbpd drop.
Crude oil prices have faded the initial spike to the $66.00 neighbourhood backed by prospects of declining production in Venezuela, while focus among traders keep gyraing around the likeliness that the OPEC could expand its production as soon as later in the month.
WTI significant levels
At the moment the barrel of WTI is down 1.57% at $64.44 and a breach of $61.77 (low Apr.6) would open the door to $60.03 (monthly low Mar.8) and then $59.94 (200-day sma). On the flip side, the next hurdle is located at $66.73 (10-day sma) seconded by $67.55 (55-day sma) and then $68.55 (high May.30).
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