Yesterday we took nice profits on short oil trade around position.  Today it is time to take more partial profits on regular oil position.

ETF USO is short from $11.31.  IT is trading at $9.88 as of this writing.  Consider taking profits on 20% of the remaining position in the zone of $9.66 to $10.05.  Consider continuing to hold the remaining position.

EIA report shows crude build of 1.67 billion barrels vs. consensus of a draw of -2.6 million barrels. Gasoline had a build of 0.452 million barrels vs. consensus of a draw of -0.5 million barrels.

From the Morning Capsule that paying subscribers received before the market open,

Oil

API Data showed that U. S. crude inventories fell by 800 K barrels vs. consensus of a decline of 2.6 million barrels.

EIA Data, which is considered more authoritative, will be released at 10:30 am ET.

A bigger problem for the oil is not crude inventories but gasoline inventories.  Gasoline inventories are building up at a time when we are about to enter the shoulder season in which gasoline demand falls. 

Our blessings in calling oil correctly continue starting with shorting oil around $108, staying bearish throughout the decline, going neutral around $29 and now we were shorting in high $40s and low $50s and taking profits around $42.01.