At 17:52 GMT, December WTI crude oil is trading $39.69, down $1.24 or -3.03%.
Crude inventories rose by 501,000 barrels in the week to October 2 to 492.9 million barrels, compared with analysts’ expectations in a Reuters poll for a 294,000-barrel rise.
U.S. gasoline stocks fell by 1.4 million barrels in the week to 226.80 million barrels, their lowest since November of last year, compared with expectations for a 471,000-barrel drop.
Distillate stockpiles fell by 962,000 barrels, in line with expectations.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The main trend will change to up on a trade through $42.02. A move through $36.93 will signal a resumption of the downtrend.
The market is currently caught between a series of retracement levels so don’t be surprised by a choppy, two-sided trade.
The short-term range is $44.33 to $36.93. Its retracement zone at $40.63 to $41.50 is resistance. This zone stopped the buying at $41.11 on Tuesday.
The first minor range is $42.02 to $36.93. The market is currently straddling its retracement zone at $40.08 to $39.48.
The second minor range is $36.93 to $41.11. Its retracement zone at $39.02 to $38.53 is the primary downside target.
The price action on Wednesday suggests trader reaction to $40.08 to $39.48 will determine the next near-term move. But the presence of retracement zones indicates a move in either direction could be a labored event.
A sustained move over $40.08 will indicate the presence of buyers. This could trigger a retest of $40.63 to $41.50.
A sustained move under $39.48 will signal the presence of sellers. This could lead to a test of $39.02 to $38.53.
The price action this week suggests we could be in for another round of rangebound trading.
Read More: Crude Oil Price Update – Strengthens Over $40.08, Weakens Under $39.48