WTI oil is holding within narrow consolidation after posting new one-week low at $63.66 on Wednesday.
Near-term bias is negative following two-day fall from $66.64 high, with bearish signal generated on Tuesday’s close below 10SMA ($64.65).
Fresh weakness on Wednesday cracked next important support at $63.97 (rising 20SMA) and sustained break here would expose pivot at $62.50 (Fibo 38.2% of $55.81/$66.64 upleg / rising daily Kijun-sen).
Negative near-term sentiment is boosted by fears in the markets about increase in US oil supplies as API report, released late Tuesday, showed US oil inventories rose by 3.2 million barrels, coming well above forecasted build of 0.1 million barrels.
Focus is on EIA weekly crude stocks data, due later today, with forecast for build of 0.12 million barrels after ten straight weeks of draws in US crude stocks.
Stronger than expected build in crude inventories would further depress oil price, while another draw in weekly crude stocks would ease existing downside pressure.
Bearish scenario requires close below $62.50 Fibo support to signal deeper correction, while firmer bullish signal could be expected on return and close above broken 10SMA.

Res: 64.23; 64.65; 65.54; 66.64
Sup: 63.66; 62.83; 62.50; 61.79