West Texas Crude Oil prices dropped over 2.5% overnight as weekly stockpiles rose much greater than expected.
The American Petroleum Institute (API) reported crude oil in storage rose by 14.2 million barrels. That surge in storage was more than 5 times analysts’ forecast and the second largest increase in the history of the data series.
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The front month futures contract traded as low 51.30, which is over 5.5% lower than last week’s high close of $54.40.
Some market commentators are pointing to increased US shale production and decreasing global demand as a headwind for crude prices going forward. The next key price support will be found at the psychologically important $50.00 level.
