Oil declines due to concerns about demand

At the basic level

Crude oil prices fell on Wednesday after a sharp rise in US oil inventories raised concerns about demand.

Crude oil prices fell to the levels of 62.50 down from the levels of 63.50 dollars per barrel, as expectations of a significant increase in US crude oil inventories reduced optimism about the trade dispute between the United States and China.

Crude oil inventories jumped by 4.3 million barrels in the week ending May 9, and the US Energy Information Administration is scheduled to release its official data later on Wednesday.

This sharp contrast with last week's significant decline suggests that demand still faces significant challenges, which worries market observers and pushes them to question the fate of the next turnaround.

And on the technical side

Crude oil retreated after it achieved the target of the bat harmonic model near the levels of 63.50 dollars per barrel, as we expected earlier in the analysis of crude oil.

We expect that crude oil will currently make some downward corrections towards the USD 64.50 levels as an initial target, and then the support levels of USD 60 per barrel.

With the possibility of selling again near the levels of 65.00/66.00 in case it breaks through the levels of today's top again.