April Crude Oil Futures Tank Over Huge Inventory Build

by Joel Elconin, Benzinga Staff Writer

March 8, 2017 2:12 PM | 1 min read |

April Crude Oil futures are trading lower by $1.90 at $51.24 per barrel in Thursday's session. The catalyst for the decline is the USA EIA inventory report for March 3 that revealed 8.21 million vs. the estimated 1.97 million — prior was 1.50 million.

The release sent the contract through the series of four lows at the $52.60 area with ease. It has continued to make new lows for the session with the current one standing at $51.08 as of 1:00 p.m. EST.

The contract is now in a vacuum area, created when OPEC announced production cuts on Nov. 30. That announcement instigated a $4.17 rally on Nov. 30, rallying from $47.72 to $51.89. Three days later, the contract has climbed to $54.47. A high for the move was made on Jan. 3, when it peaked at $56.20.

The bottom of the vacuum area does not come in until its Nov. 30 low ($47,85).

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