Today's EIA report at 14:30 GMT will be crucial with regards to the short term direction. Surveys point to a 3 million barrel inventory rise and a rise of that magnitude carries the risk of sending oil straight back down again. Before then the IEA will release its monthly report at 9:00 GMT
Open interest on WTI crude oil futures have spiked during the past week, indicating increased short-selling.
WTI crude oil has bounced of $47.18/b, the technical important 61.8% retracement of the November to January rally while Brent crude oil found support at $50/b which is also the trend line from the 2016 low.
Additional consolidation above the 200-day moving average on CLJ7 could see it return to $50.25/b