US commercial crude oil inventories dropped -3.1M barrels in the week ending June 14, larger than expectation of -1.5M. At 482.4 million barrels, U.S. crude oil inventories are about 7% above the five year average for this time of year.
WTI crude oil has little reaction the data. The break of 4 hour 55 EMA is another sign of stabilization in oil price. Yet, WTI is held below 54.86 resistance so far. Thus, near term outlook remain bearish for another fall. Break of 50.64 and sustained trading below 61.8% retracement of 42.05 to 66.49 at 51.38 could pave the way to retest 42.05 low. However, sustained break of 54.86 will confirm short term bottoming. Stronger rebound would than be seen back to 55 day EMA (now at 57.59).
