Oil Tests Resistance At $48.65

Oil is trying to settle above the resistance at $48.65 after the release of a bullish inventory report. It remains to be seen whether there is enough interest in the market at the end of the year, but there is plenty of room to gain momentum after the recent consolidation.

If oil gets above $48.65, it will head towards the next resistance at December highs at $49.40. A move above this level will push oil towards the psychologically important $50 level.

On the support side, the support level at $47.70 has been tested once again during the current trading session. The support at this level remains strong, but a move below $47.70 may lead to a sell-off.