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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