US commercial crude oil inventories dropped -1.7m barrels in the week ending May 21, versus expectation of -1.0m barrels. At 484.3m barrels, crude oil inventories are about 2% below the five year average for this time of year. Gasoline inventories dropped -1.7m barrels. Distillate dropped -3.0m barrels. Propane/propylene dropped -0.4m barrels. Total commercial petroleum inventories dropped -7.7m barrels.
WTI crude dropped to 61.51 last week, but drew support from 55 day EMA and rebounded strongly. Nevertheless, WTI lost momentum ahead just ahead of 66.98/67.83 resistance zone. Consolidation pattern from 67.83 could still extend with another falling leg. Break of 61.51 will target 57.31 support and below. But even in that case, downside should be contained by 38.2% retracement of 33.80 to 67.83 at 54.83. Nevertheless, break of 67.83 will resume larger up trend for 70 handle next.
