Brent Oil (-3.1%) has seen some strong selling in the past twenty minutes after an unexpected rise in DOE inventories. The market has been under pressure ever since the OPEC meeting last month and the latest leg lower has come on the back of a 3.3M rise in inventories. A decline of 3.1M was expected which would have been the 9th successive weekly drop with last week seeing a large decline of 6.4M barrels. You have to go all the way back to early April for a rise in US stockpiles and this release comes as another blow for oil bulls.
Brent Oil has reacted negatively to the release with the market plummeting more than 150 ticks within minutes of the data being published.
Longer term the downtrend remains clearly defined with the 8 and 21 period EMAs diverging as momentum to the downside has picked up. 46.70 is the next level to watch in swing terms with this low coming during the Asian session after a swoon lower just over a month ago. A series of lower highs (LH) and lower lows (LL) remains valid and a drop below 46.70 would another lower low to the sequence.