WTI crude oil drops sharply as US commercial crude oil inventories surprisingly rose 6.8M barrels in the week ending May 31. That’s way above expectation of -1.7M barrels decline. Now at 483.3M barrels, US crude oil inventories are about 6% above five year average for this time of the year.
WTI’s fall from 66.49 resumes and hits as low as 51.25. It’s now pressing 61.8% retracement of 42.05 to 66.49 at 51.38. Further decline will now remain in favor as long as 54.61 minor resistance holds. Sustained break of 51.38 could pave the way to retest 42.05 low.
