US commercial crude oil inventories dropped -1.0m barrels in the week ending October 16, versus expectation of 0.5m barrels rise. At 488.1m barrels, oil inventories are about 10% above the five year average for this time of the year. Gasoline inventories rose 1.9m barrels. Distillate dropped -3.8m barrels. Propane/propylene dropped -1.6m barrels. Commercial petroleum dropped -7.2m barrels.
WTI edged higher to 41.62 earlier in the week but failed to extend gain. Focus is back on 40 handle and sustained break will open up the way lower. But after all, it’s seen as stuck in medium term range pattern between 34.36 and 43.50. We’re not expecting a breakout soon and the path could be choppy, meaning that any move won’t be sustained.
