West Texas Intermediate crude oil is falling again.
On Wednesday afternoon, the price of WTI was down more than 4% and moving back towards $US44 per barrel as oil still can’t find a bottom and continues to swing wildly up and down.
Near 2:40 p.m. ET, WTI was trading as low as $US44.28 a barrel.
The big market event on Wednesday was the Federal Reserve’s latest policy announcement, which didn’t do much to move markets and didn’t hold many surprises.
In the oil market, Wednesday saw the release of the latest crude inventory report from the Energy Information Administration, which showed that US crude oil inventories rose by 8.9 million over the previous week. In its report, the EIA said, “At 406.7 million barrels, US crude oil inventories are at the highest level for this time of year in at least the last 80 years.”
And on Twitter following this report, Bespoke Investment Group noted that this was the biggest three-week rise in crude inventories since 1989. Over the weekend, we highlighted this chart from Bespoke’s George Pearkes showing that crude inventories in the US are basically off the chart right now.
Inventory data from the EIA follows news on Tuesday out of the American Petroleum Institute, which reported that crude inventories surged by almost 13 million barrels last week.
Here’s the chart.