The weekly API data, a potential prelude to tomorrow's official inventory data, has sent oil to the $51 handle from $50.65.
Oil has been climbing gradually from the lows of $50.11 through the 200 dma at 50.67 and is meeting a key resistance line currently from 51.98 highs scored on 10th October. The data showed a draw (-3.8m vs 2.7 previous) in crude stocks vs the expectations that were for a build of 2.4mln barrels.
Meanwhile, U.S. data continues to conflict against the Fed's plans for hiking interest rates with CPI disappointing again: U.S. CPI reviewed: reduces the urgency for the Fed to hike – Nomura
The US dollar is on the back foot as a result of investors writing off November as a live meeting and instead monitoring the performance of the sluggish U.S. economy for any clues as to whether the Fed could possibly hike in December before the market loses all confidence in their ability to hike, subsequently marking down the outlook for the US economy and the US dollar.