Inventories Continue to Weight on Oil Prices, But Likely Not On the Fed's Decision

After another weekly build in Oil Inventories, reported this morning, Oil has pressed lower off of yesterday's recovery high at $37.88 to $35.85 so far today.

As mentioned in yesterday's chart post, the pattern carved out off of the Dec 14 multi-year low at $34.53, exhibited unimpressive counter-trend form, which suggested strongly that another loop down to revisit the $34.53 low was more likely than a challenge of key resistance at $39.00-$40.00.

Such a scenario appears to be unfolding, which my pattern work indicates is the emergence of a sideways, range-bound bearish digestion zone between $37.75 and $34.75... ahead of another downleg (the final plunge?) that will project to $30.00 - $29.00 ahead of the elusive counter trend rally to $40.00.