Traded volumes for WTI crude oil have shifted from the July to August contract. Accordingly, August WTI crude is the new front-month issue and has rallied more than $1.50 on the session. At press time (1:30 PM EST), August WTI is challenging the $54.00 level on a bit more than 450,000 contracts traded.

Later in today’s U.S. session, the weekly crude oil inventories cycle will kick off with the API report. Industry experts are projecting the API to fall from last week’s levels and align with seasonal tendencies. In addition, tomorrow’s EIA Crude Oil Stocks Report is estimated to show a decrease of -2.033 million barrels.

If the API and EIA figures show robust builds in supply, then today’s bullish action may be short-lived.

August Is The New Front Month Contract For WTI Crude Oil Futures

Early June has brought bearish consolidation beneath the $54.00 level for August WTI crude oil. However, it appears that energy bulls are back in the market for oil following futures rollover.

Here are the levels to watch in this market as inventories draw near:

• Resistance(1): 38% Current Wave Retracement, $54.23
• Support(1): Swing Low, $50.79

Overview: At the moment, it appears as though the coming inventories reports are likely to determine the short-term direction of WTI. Price rejected trade above the 38% Current Wave Retracement ($54.23) earlier in the session; this a strong bearish signal. If we see another surprise build in the API and EIA stocks reports this week, then a test of $50.00 will become highly likely by Friday’s closing bell.