US crude oil suppliy decreased 4.9 million barrels last week after the refineries continue to limit production and imports declined, as reported by the Energy Information Administration (EIA).

However, the EIA also reported that the gasoline supply has increased for the first time in the last 6 weeks. This could potentially gives pressure to the market. Supply at Cushing, Oklahoma, a major shipping center for crude oil futures, rose as well.

OIL 7 APRIL 2016 FOREXTODAY

From the technical analysis point-of view, oil price remains in uptrend for short-term outlook. Correction has occurred to within the Fibonacci support area at 37.60-37.20. Hourly stochastic and CCI are oversold. As today’s trading strategy, watch for bullish signal confirmation within the Fibonacci support area with target at 37.89 or 38.26 in extension.

Be careful if the price managed to break the support at 37.20 because it may turn the intraday bias to bearish and possibly will drag oil price lower to 36.95 or 36.54.

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