The American Petroleum Institute reported that U.S. crude supplies fell by 1.1 million barrels for the week ended May 13. Markets were expecting a decline of 3 million barrels. Traders now wait for US government data release. A smaller-than-expected drop in inventories or rise in inventories along with rise in gasoline stocks could be enough to trigger a technical correction in oil .
Brent could drop to support around $48.73. Further losses towards $47.99 (23.6% Fibo) cannot be ruled out on inventory report. On the higher side, psychological level of $50.00 stands exposed and could be breached/tested on inventory report.