Increased consumer demand over last month’s Thanksgiving holiday weekend is being given the credit for today’s lagging oil inventory figures. For the week of November 30, the EIA is reporting a draw of -7.323 million barrels. This number is well below industry projections of -0.942 million and the previous week’s +3.577 million barrels.

Regardless of the negative numbers, January WTI crude oil futures continue to show weakness midway through the session. Prices have fallen beneath the $51.00 level and appear poised to revisit $50.00. The week’s opening GAP up in WTI has been filled and energy bears have taken this market over.

Post EIA Action In WTI Crude

It stands to reason that such a negative EIA figure would bump the price of January WTI north. However, this scenario has not yet developed, with price running to the $50.08 level shortly after the release.

For the rest of the session, there are two levels on my radar:

• Support(1): Psyche Level, $50.00
• Support(2): November’s Low, $49.41

Bottom Line: The $50.00 level is likely to create heavy 2-way action. It may set up yet again as an intermediate-term bottom. However, the number that will bring more credence than $50.00 is November’s low at $49.41. WTI is currently extremely bearish. A test beneath November’s low should wash out a high volume of short-term position longs taken on Monday following the G20 Summit.

Until elected, I will have sell orders queued up from $49.40. Using a tight 12 tick stop loss, this trade should be good for a fast 8-12 ticks using a sub-1:1 risk vs reward management plan.