Oil rebounds from 1-year low as US inventories rise for an eight consecutive week

Oil prices continue to rebound for a second consecutive day and off the 1-year low and record 12 straight days of weakness.  Concerns of rising oil production and weakening demand from developing countries helped take West Texas Intermediate into bear market territory.  Earlier in New York, the EIA weekly crude oil inventory report saw U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 10.3 million barrels from the previous week, significantly higher than 3.2 million eyed by analysts. This was the eighth straight week of increases and the deepest rally since early 2017.  At 442.1 million barrels, U.S. crude oil inventories are about 5% above the five year average for this time of year.

Despite the recent bounce, price action on the WTI daily chart displays the recent bearish trend is closely approaching a death cross, a technical signal that occurs when the 50-day moving average crosses through and below the 200-day moving average.

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Ed Moya

Ed Moya

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya