US commercial crude oil inventories dropped -1.6m barrels in the week ending September 18. At 494.4m barrels, inventories are about 13% above the five year average for this time of the year. Gasoline inventories dropped -4.0m barrels. Distillate dropped -3.4m barrels. Propane/propylene inventories rose 1.7m barrels. Commercial petroleum inventories dropped -7.5m barrels.
WTI trades mildly higher after the release. The rebound form 35.98 lost momentum and pull back after hitting 41.43. But retreat was then contained at 38.66. Overall, it’s staying in a consolidation pattern below 43.50 medium term top, gyrating around a flat 55 day EMA. More sideway trading would be seen and the path could be quite unpredictable. But in any case, we’re not expecting a break of 43.50 for the near term. In case of another fall, downside should be contained by 34.36 support to bring rebound.
