WTI Correction Deepens as US Inventories Rise

WTI crude oil has entered a deeper correction phase after its recent spike above $106. On October 1, the price of WTI is trading around $94.2 and remains below both fast and medium-term moving averages on the 4-hour chart.

The $92.0-91.5 area is still holding as support for the market, but recent rebounds have been met with selling pressure. The latest EIA report showed a rise in U.S. commercial crude inventories by around 0.9 million barrels to 427.3 million barrels, while stocks at Cushing increased to 24.3 million barrels.

This is particularly important for WTI as rising inventories at Cushing reduce local supply tightness. However, the overall balance does not look quite as bearish: total commercial inventories of crude oil and petroleum products declined over the week.