• Oil price ticks up slightly after snapping a four-day winning streak on Tuesday. 
• Traders saw a chunky overnight drawdown of 5.2 million barrels from the US American Petroleum Institute.
• The US Dollar Index weakens ahead of the US CPI release. 

Oil clings onto small gains on Wednesday, though pressure is building on the chart for more downside in crude prices after Tuesday’s slide. The chunky drawdown of 5.2 million barrels reported by the American Petroleum Institute (API) was able to give some counterweight to the selling pressure from Tuesday. The sell-off took place after the release of the Producer Price Index (PPI), which came in substantially softer than markets expected, jacking up expectations of another soft reading for the US Consumer Price Index (CPI) later today. 

The US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, faces selling pressure as well. The US CPI release for July is likely the most important data release for the week. Analysts expect the disinflationary path to continue,  and this scenario might bring more weakness for the US Dollar (USD).