US Oil closed higher due to short covering on Wednesday as it consolidates some of the decline off July's high. The high range close sets the stage for a steady to higher opening when Thursday's night session begins. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near term. If it extends the decline off July's high, the 38% retracement level of the April-July rally crossing is the next downside target.