After reaching fresh five-month highs around the $70 psychological mark, Brent retreated slightly yesterday, with the bearish pressure is intensifying on Thursday as the prices are flirting with $69 after data showed a larger-than-expected jump in U.S. crude inventories.
According to the EIA report, inventories rose 7.2 million barrels to 449.5 million barrels in the week ended March 29, while production increased to 12.2 million barrels per day, which is a new record high. In general, market reaction to the report was rather muted but anyway played against the bulls along with technical factors as the psychological level has deterred buyers.
In a wider picture, the market is still supported by OPEC efforts, US sanctions against Iran (and potentially tighter sanctions) and Venezuela, and expectations of a steady demand in the coming months. A break below $69, should the current bearish correction will continue, will open the way towards the $68.80 intermediate support.