US commercial crude oil inventories dropped -4.6m barrels in the week ending January 7. At 413.3m barrels, crude oil inventories are about -8% below the five year average for this time of year.
Gasoline inventories rose 8m barrels. Distillate rose 2.5m barrels. Propane/propylene dropped -3.4m barrels. Total commercial petroleum inventories dropped -4.5m barrels.
WTI crude oil’s rally continues in early part of US session and hits as high as 82.76 so far. Further rise is expected to 161.8% projection of 62.90 to 73.66 from 66.46 at 83.86 and possibly further to 85.92 high.
We’d maintain the view that rise form 62.90 the second leg of the consolidation pattern from 85.92 only. Hence, we’re not expecting a firm break of 85.92 yet. Instead, another fall should be seen before the consolidation completes. Break of 77.97 support will indicate rejection by 85.92 and target 73.66 resistance turned support first. However, firm break of 85.92 could pave the way to 90 handle.
