There is one indicator to watch.

The Department of Energy reported this morning that in the week ending Oct. 17, U.S. crude oil inventories increased by 7.1 million barrels, gasoline inventories decreased by 1.3 million barrels, distillate inventories increased by 1 million barrels and total petroleum inventories increased by 4.4 million barrels.

Crude oil was narrowly mixed after the release of the latest inventory figures. Prices haven’t done all that much since putting in fresh lows last week. Since then, Brent is up about $4 and WTI is up about $2.

At the very least, a short-term oversold bounce is due, and it wouldn’t be surprising to see Brent and WTI climb another $5 from here, at least. But for a sustainable rally to take shape, there has to be some evidence of tightening on the supply and demand front.

BRENT

WTI

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