Oil continues to be aggressively bought by the momo crowd. However, Smart Money continues to lightly sell it.

EIA Oil Inventories came at -4.2 million vs. consensus of -2.65 million.

It is important to look at gasoline inventories, especially as we near the peak driving season.  Gasoline inventories came at +2 million vs. consensus of -1.5 million.

It is still  not advisable for most investors to use futures due to high volatility.

Technically oil is very overbought and prone to a correction.

What To Do Now

Consider adding 10% of the full core position size to the regular short position in USO in the zone of $11.80 to $12.23.  USO is trading at $11.94 as of this writing.  Stop on this tranche is in the zone of $12.81 to $13.17.

There is no change in the prior target zone.