Crude oil fell relentlessly last week, but managed to post a modest gain on Monday. Prices turned lower once again yesterday, and the sell-off has continued this morning. Front-month WTI has now fallen back below $78 per barrel, a level which acted as resistance back in November, January and February. It’s now apparent that it hasn’t offered any support to prices. Crude continues to come under selling pressure as traders consider future demand growth. Undermining demand is the dialling down of expected Fed rate hikes this year. Expectations have fallen significantly given the upturn in inflation throughout the first quarter. This means that the US economy won’t feel the stimulative benefits of significant rate cuts this year, and that should weigh on demand for crude. There was additional selling pressure following yesterday’s update on US crude oil inventories from the American Petroleum Institute (API). These showed an unexpectedly large build in crude stockpiles, and this follows on from last week’s build. This suggests that there’s ample supply in the US. Prices rallied a touch following an inventory update this afternoon from the US Energy Information Administration. This showed a slightly bigger than expected drawdown. But it feels as if there’s more downside to come until crude oil finds decent support.