Oil prices tumble more than 5 percent

Oil prices finally seem to have calmed down after breaking several major support levels in the wake of a much stronger-than-expected increase in U.S. crude inventories. At the moment WTI is retreating 5.36% at $50.28, heading for the lowest daily close since mid-December.

According to the report published by the U.S. Energy Information Administration on Wednesday, domestic crude supplies for last week jumped by 8.2 million barrels, pushing total commercial inventories up to a record weekly level of 528.4 million. 

Brent for May delivery tumbled 5% to $53.11 on the London-based ICE Futures Europe exchange, also the lowest close since Dec. 7.

Technical levels for WTI

A breach of $50/49.95 (psychological level/Dec. 15 low) area would aim for $48.67 (200-DMA). On the upside, resistances are lined up at $52 (psychological level), followed by $53.13 (20-DMA) and $54.23 (Feb.28 high).