Crude Oil has been facing a bit of speculation around increased supply but it appears this weeks inventory report might fall on the bullish side of things.

Analysts were predicting a draw in the unofficial API data, but we saw a larger than expected number coming in at 5M compared to 1.4M expected.

The API data can often give us a guide as to what we might expect as we look to the official EIA number.

While oil didn’t bounce too much and is trading relatively flat in Asian trade, this will be one to watch. If we get a bounce that might be an opportunity to sell along with the longer-term downtrend.

The Technical Picture

My downside target at the moment remains at $64. There is a trendline that price is riding that has been in place since the highs.

A break of that might be a bit of a bullish sign, but as mentioned, we haven’t reacted all that much to the big draw from the API data. But perhaps we are waiting on the official number.

Even a weak USD hasn’t helped oil rally which is a bit of a sign of underlying weakness. Or at least supply.

The round number levels are providing the support and resistance at the moment and I will be watching them as we move toward the $64 level.