Oil up, up and away toeards $50 in driving season rally

Oil made fresh highs $49.31bbls on the American Petroleum Institute (API) inventory data showed a draw of 5.14 million barrels and the stockpile data for oil via API's weekly survey came as follows:

Crude -5.137 mln bbls, Distillate -2.922 mln bbls, Gasoline +3.606mln bbls and Cushing -0.189mln bbls.

Oil recovers despite USD rally

Oil continues to recover, despite the dollar on the bid that signals how strong this recovery really is. This could be down to a seasonal rally during the U.S. summer driving season. Memorial day is also coming up this week and a draw-down in inventories are likely in tomorrow's data in preparation for the holidays and could bring the $50 level into play. July 4th is the peak of the season and should keep the oil price recovery underpinned.

Oil near term levels

The price is now testing the monthly 20 sma at $49.35 and has the daily target of the 8th Oct highs as $50.88bbls WTI. to the downside, the 20 dma is located at $46.36 and the double top at $42.00/20 levels.