Crude oil inventories are expected to contract by -1.936mm barrels vs. the previous week’s rise of 0.384mm barrels. Resistance is currently around 53.35 to 54, while support has held between 50.50 and 51. We have been bouncing around this area for a week now. News of Iran’s nuclear agreement along with Israel and GOP intentions to block it, China’s stock market correction nor the Greek tragedy with Europe have failed thus far to make any sustainable impact on the energy markets. Instead, we have a triple top and bottom pattern formations in the 2-hour time frame, which suggest the market direction for trading will be data dependent on supplies and refinery capacity.
A bullish EIA report could push WTI Crude Oil into the 57-58 range and a bearish report might tip us over the slippery slope and send prices sliding between 47 to 45.50 levels. It should be be an interesting trading opportunity any minute now. However, Janet Yellen is testifying before Congress and the FOMC’s Fed-speak calculus might stump investors and traders for a day or two, but we will see a decisive short term move in oil.