US commercial crude oil inventories rose 15.2m barrels in the week ending December 4, well above expectation of -0.9m barrels decline. At 503.2m barrels, inventories are about 11% above the five year average for this time of year. Gasoline inventories rose 4.2m barrels. Distillate rose 5.2m barrels. Propane/propylene dropped -4.1m barrels. Total commercial petroleum rose 19.9m barrels.
WTI crude oil dips mildly after the release but it’s so far seen as in consolidation from 46.55 temporary top. As long as 43.78 support holds, further rise is expected. Break of 46.55 will pave the way to 50 psychological level. However, firm break of 43.78 should indicate short term topping. In this case, deeper pull back would likely be seen back to 55 day EMA (now at 41.78), or a bit lower to 40 handle.
