US commercial crude oil inventories dropped -6.6m barrels in the week ending February 5, smaller than expectation of -0.9m barrels. At 469.0m barrels, oil inventories are just about 2% above the five year average for this time of year. Gasoline inventories rose 4.3m barrels. Distillate inventories dropped -1.7m barrels. Propane/propylene inventories dropped -4.5m barrels. Commercial petroleum inventories dropped -11.2m barrels.
WTI oil price rally continued this week and met 100% projection of 47.24 to 53.92 from 51.58 at 58.26 already. Though, upside momentum diminished mildly since then, as seen in 4 hour MACD. For now, further rise is still expected as long as 57.18 minor support holds. Sustained break of 58.26 will confirm underlying momentum. Some upside acceleration could then be seen to 161.8% projection at 62.38. However, break of 57.18 will indicate short term topping and bring deeper pull back.
