WTI under heavy pressure, $51 in sight

Oil prices continue to fall on Wednesday after another weekly increase in crude inventories. At the moment the barrel of WTI is retreating 3.8% at $51.12.

EIA report

According to the report published by the U.S. Energy Information Administration on Wednesday, domestic crude supplies for last week jumped by 8.2 million barrels, pushing total commercial inventories up to a record weekly level of 528.4 million. The big decline seen in gasoline supplies couldn't help WTI limit its losses.Furthermore, earlier data showed that China recorded a surprise trade deficit in February, its first since 2014, heightening the concerns over the economic slowdown of one of the world's biggest oil importers. 

Technical outlook

On the technical side, the break below $52 psychological level and the 200 smoothed SMA on the 4h chart may have triggered stops, putting, even more, pressure on the price. 

Technical supports for WTI are aligned at $50.75 (Jan. 11 low) and $50/49.95 (psychological level/Dec. 15 low). On the upside, the next resistance lines up at $52 (psychological level), followed by $53.13 (20-day sma) and $54.23 (Feb.28 high).