Oil ran into tech trouble as the u.s. tech sector is under fire leading to a sell-off in stocks against a backdrop of rising oil inventory. The Data breach scandal at Facebook is only one of many quick rising problems for the many tech firms and I am sure somewhere the Winklevoss twins are smiling. As the whisper number suggested, oil inventories increased by a whopping 5.32 million, according to the American Petroleum Institute(API) barrels. This was led by an increase in U.S. imports, a 1.66-million-barrel build in Cushing Oklahoma and a 7-million-barrel sale from the U.S. Strategic Petroleum Reserve to feed our oil-hungry refineries.

The sharp increase in U.S. supply may temper prices. The fear that the tech sector sell-offs may bleed into the overall economy may hurt prices. Yet we feel that those fears are overplayed. While the technicals on oil look weak in the short run, it does not change the bullish outlook in the long run.

While a slowdown in tech is a potential threat to the economy, the reality is that Facebook and Twitter don't run on oil. The oil sector of the economy was more concerned with a trade war and if that is averted we will raise our oil demand expectations. A deal with China to potentially open their economy is very bullish for oil demand expectations as well as global economic growth.