US commercial crude oil inventories rose 1.4m barrels in the week ending June 19, slightly above expectation of 1.2m barr3els. At 540.7m barrels, oil inventories are about 16% above the five year average for this time of the year. Motor gasoline inventories dropped -1.7m barrels. Distillate fuel inventories rose 0.25m barrels. Propane/propylene inventories rose 2.4m barrels.
XTI/USD edged higher to 41.39 earlier this week but dips notably after the release. Considering bearish divergence condition in 4 hour MACD, we’d continue to expect strong resistance from 42.05 to limit upside to bring a near term correction. That is, upside potential in WTI should be limited even in case of another rally. On the downside, break of 37.12 minor support should indicate short term topping and bring deeper fall to 55 day EMA (now at 34.07) and below.
