Crude oil is getting smoked

Oil is getting smoked after the latest inventory data from the American Petroleum Institute showed a huge increase in crude oil inventories last week.

The latest report from API showed crude oil inventories rose by 14.3 million barrels last week against an increase of 1.6 million the week earlier, according to RanSquawk.

Following this report, West Texas Intermediate crude prices fell more than $US1 quickly, trading down more than 4% to as low as $US51.34 a barrel.

The late-session drop comes as oil has rallied and reached something like an equilibrium over the last couple weeks, with WTI prices generally bouncing around in the low-$US50s. A number of major banks and commentators, however, have called for oil prices to go lower as production still remains at multi-year highs.

Here’s the drop in oil late Wednesday.

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