Oil reversing the lows for June and July business, back to $45.50

Oil had made fresh lows of late with WTI down to $44.54bbls with a feared glut in the market again. However, we have seen a huge spike in recent trade back to $45.50.

Earlier, Oil had dropped over 1 percent again this week while the US dollar continues to gain. 

U.S. crude stockpiles fell by 2.3 million barrels last week as reported in the API data.  We now await the U.S. government's EIA later today in the US session and another draw-down will be the ninth straight week that U.S. crude stockpiles have fallen.

However, we are in the peak of the US summer driving season and even so storage on land has tightened in recent weeks and this fuel prices weakened. This has lead to physical traders storing diesel that could flood the market at a later stage. 

Meanwhile, a huge reversal has taken place in early Asia.