WTI extends losses below $69 in post-settlement trade after API report

The barrel of West Texas Intermediate extended its losses in the post-settlement trade on Wednesday after the weekly report released by the American Petroleum Institue showed a less-than-expected draw in the U.S. crude oil inventories. 

Crude inventories fell by 1.17 million barrels to 404.5 million in the week to August 31, the API reported, and this number came in slightly below the Reuters' estimate of 1.3 million barrels. Further details of the report showed that refinery crude runs rose 198,000 barrels per day.

Earlier today, reports of the Gulf storm losing its strength and moving away from oil-producing areas helped concerns over supply disruptions ease and weighed on crude oil prices. "Prices yesterday rose in anticipation that the storm could inflict some damage on the production and refining sector, but after all was said and done we lost a little bit of production, and the refineries in Mississippi and Louisiana continued to run as Gordon made landfall," Andrew Lipow, president of Lipow Oil Associates, told Reuters.

Furthermore, Organisation for Petroleum Exporting Countries (OPEC) Secretary General Barkindo warned that global trade disputes could hurt energy demand in the future to drag prices even lower. Barkindo further explained that their priority was to keep the oil market stable to allow investors to return. 

Crude oil WTI Technical Analysis: Rising wedge bear breakout should target 68.00 figure