Crude oil prices were trading lower on Wednesday. This comes after the weekly inventory report showed a mixed picture with gasoline inventories rising while crude stockpiles falling.
The decline in oil prices comes after a brief attempt to trade above the 41.00 handle for the second day.
However, price action is pushing lower. If we see further declines and potentially below Tuesday’s lows of 40.25, then we expect further declines back to the 39.00 handle.
This will keep oil prices trading within the range of 41 and 39 for the near term.
A breakout from this range could decide the next leg in the direction of the trend.