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

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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

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA 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 CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
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