US commercial crude oil inventories rose 4.9m barrels in the week ending July 17, versus expectation of -2.1m barrels decline. At 536.6m barrels, oil inventories are about 19% above the five year average for this time of the year. Total motor gasoline inventories dropped -1.8m barrels. Distillate fuel inventories rose 1.1m barrels. Propane/propylene inventories rose 2.0m barrels. Total commercial petroleum inventories rose 8.8m barrels.
WTI gyrated higher to 42.29 this week with rather weak upside momentum. 42.05 key resistance level was breached but WTI couldn’t sustain above it yet. We’d maintain that 42.05 should eventually hold. Break of 38.45 support would confirm short term topping and bring long-overdue pull back. However, sustained break of 42.05 would carry some larger bullish implications.
