US commercial crude oil inventories dropped -7.3m barrels in the week ending February 12, well below expectation of -2.1m decline. At 461.8m barrels, oil inventories are already at the five year average for this time of year. Gasoline inventories rose 0.7m barrels. Distillate inventories dropped -3.4m barrels. Propane-propylene inventories dropped -2.9m barrels. Total commercial petroleum inventories dropped -15.1m barrels.
WTI oil retreats mildly just ahead of 100% projection of 47.24 to 53.92 from 51.58 at 62.38. Still further rise is expected as long as 59.34 support holds. Firm break of 62.38 will pave the way to 65.43 structural resistance next. We’d pay attention to loss of upside momentum as it approaches this 65.43 level. On the downside, break of 59.34 will now indicate short term topping and bring deeper pull back.
