Oil intermarket: WTI sold off, but market tone to offer support at $48.00?

WTI has been suffering the OPEC meetings of late and subsequent announcements in a typical buy the rumour sell the fact speculative trade. 

The U.S. Energy Information Administration reported today that domestic crude supplies fell by 6.4 million barrels for the week ended May 26. Inventories have now fallen each week for about two months. This was not as big as a result as yesterday's with the American Petroleum Institute reported that crude supplies fell 8.7 million barrels last week, while sme expectations were a fall of just 3.2 million barrels.

The dollar has also been volatile and there has been a direct correlation at times as can be expected. For today, oil prices climbed initially on the back of the U.S. government data that revealed supplies of crude oil have now fallen for eight weeks in a row. However, the last hourly stick took the price down below the $48 handle again (a key support level) after highs of $48.94 spot and bears eye the next key technical support at $47.80.  

The DXY continues to weigh on the price of oil today, holding above the psychological 97 handle with highs of 97.32 for the day so far, up +0.30%. However, stocks are performing strongly t the moment which should offer some stability to risk in general and to oil.