US commercial crude oil inventories dropped -7.4m barrels in the week ending July 31, much larger than expectation of -3.4m barrels fall. At 518.6m barrels, inventories are about 16% above the five year average for this time of year. Gasoline inventories rose 419k barrels. Distillate rose 1.6m barrels. Propane/propylene rose 2.3m barrels. Commercial petroleum dropped -2.1m barrels.
WTI crude oil surged to as high as 43.38 earlier today and remains firm after the release. Key resistance level at 42.05 is taken out finally. Near term outlook will remain bullish as long as 38.58 support holds. Focus is now on whether there will be upside acceleration to 55 month EMA (now at 54.28). This is the next key level to overcome to reverse the long term down trend.
