As of Thursday, the December Crude oil contract is trading down approximately $2 near the $71.20 per barrel price. This comes following another large build in inventories in the EIA and API numbers, which were delayed from the Monday holiday. While the draw in EIA was less than the API last night, the sizable draw still comes at a time of year that typically coincides with refinery turnover, evidenced by the decrease in the refinery utilization rate to 88.8 percent. Given the downside in global equity markets this week, and the possibility for oil prices to act as a proxy for global growth and demand, outside markets may also want to be considered.

The builds in inventory and global equity sell-off have led the market back to the highs of May and September, visible in the chart below.  Traders may position around the $71 per barrel level, as today’s price action has respected this level at the time of this writing.  It may be possible that this level continues to act as support, like today, or become new resistance should trading break below that level.

Crude Oil Nov ’18 Daily Chart