US commercial crude oil inventories rose 7.7m barrels in the week ending March 6, way above expectation of 2.0m. At 451.8m barrels, oil inventories are about 2% below the five year average for this time of year.
Earlier today, OPEC slashed said global demand will rise by just 60k barrels a day this year, a sharp a reduction of 920,000 bpd from its previous forecast. It said, “considering the latest developments, downward risks currently outweigh any positive indicators and suggest further likely downward revisions in oil demand growth should the current status persist.”
WTI crude oil is staying in consolidation above 27.50 low for now. Some more sideway trading is expected until certain breakthrough in Saudi Arabia-Russia oil price war, on either side. We’re not expecting a firm break of 27.69 (2016 low. Meanwhile, rebound attempt should be capped by 42.05 support turned resistance.
