Crude Oil at 6 Year Low

On August 19, West Texas Intermediate oil futures fell over 5% to a low of $40.87. The sharp decline was a reaction to EIA’s weekly report that showed U.S. “crude inventories rose by 2.6 million barrels” the week ending Aug 14th. Production fell during the period. Crude oil inventories are at the highest level in 80 years, and oil prices have fallen 30% in recent weeks in response to the oversupply.