US oil inventories are filling ahead of driving season.
May is typically the strongest month of the year for WTI crude oil prices as the industry switches from building inventories to drawing them as Americans hit the road. Today’s numbers showed there will be more oil in storage than thought with crude stockpiles up 7.265 million barres per day compared to a 1.1 million draw expected.
Crude oil prices had been climbing ahead of the release but slumped afterwards to the lowest since March 14. Eyes are on the key $80 level now but this looks like a head-and-shoulders top to me.
WTI crude oil daily
The measured target of the head-and-shoulders would be $74.