As a result, Brent dived to early-September low of $75.65 and staged the largest daily decline since mid-July. On Wednesday, the barrel is making some timid recovery attempts but remains under pressure, despite the risk sentiment has improved somehow. The additional negative factor for the market is another surprisingly large build up in US crude oil inventories. data showed that the stockpiles increased by nearly 10 million barrels last week.
Later in the day, the EIA will release its official data. Should the numbers similarly disappoint, and crude oil production rises after the recent decline in activity, Brent will struggle to recoup steep losses and could target even lower. In this scenario, the price may target the $75 handle if the $75.60 area gives up.