WTI drops to $20 area after EIA reports huge increase in US crude oil stocks

• EIA says weekly crude oil stocks in US increased by 13.8 million barrels.
• US fuel demand declined by 1.6 million barrels last week.
• Russia says they are not holding talks with Saudi Arabia on oil markets. 

Crude oil prices came under renewed selling pressure in the last hour after the weekly report published by the US Energy Information Administration (EIA) showed a huge build-up in crude oil stockpiles. As of writing, the barrel of West Texas Intermediate was trading at $20.05, erasing 0.25% on a daily basis.

EIA data weigh on WTI

The EIA said commercial crude oil inventories in the US increased by 13.8 million barrels in the week ending March 27th. Further details of the publication revealed that the total products supplied, a measure of fuel demand in the US, declined by 1.6 million barrels in the same period.

Earlier in the day, a Kremlin spokesman noted that Russia was not holding talks with Saudi Arabia on the oil markets and added that talks could be set up in a timely manner if necessary.

Meanwhile, Saudi Arabia's crude oil supply rose to more than 12 million barrels per day on Wednesday, Reuters reported, citing two industry sources familiar with the matter.

Technical levels to watch for