Energy Information Administration released data that US weekly oil supplies increased by 6.6 million barrels last week, supply reached 536.5 million barrels. The number is bigger than American Petroleum Institute report released the day before as many as 6.2 million barrels.
Iran has said that they does not plan to participate in the deal of the output freezing as they try to restore production levels after the economic sanctions.
Oil price remains in upward trajectory for short-term to mid-term outlook. The oil price is testing intraday key resistance at 42.22. If the price managed to break the resistance, the oil price possibly will continue the rally up to 43.03-43.72.
Note that hourly CCI is overbought. Correction may occur today. In that case, watch for bullish signal confirmation on a pull-back move to within the Fibonacci support area at 41.08-40.37 with target at 41.51 and 42.22 in extension.
Be careful if the price managed to break the support at 40.37 because it may turn the intraday bias to bearish and possibly will drag oil price lower to 39.87 or 39.23.