US commercial crude oil inventories dropped -5.1m barrels in the week ending May 28. At 479.3m barrels, oil inventories are about -3% below the five year average for this time of year. Gasoline inventories rose 1.5m barrels. Distillate rose 3.7m barrels. Propane/propylene rose 4.1m barrels. Total commercial petroleum inventories rose 1.9m barrels.
WTI crude oil edged higher to 69.27 earlier today but retreated on broad based Dollar rebound. Nevertheless, prior break of 67.83 resistance should have confirmed up trend resumption. While some consolidation might be seen, downside should be contained well above 65.15 resistance to bring rise resumption. We’re tentatively put 38.2% projection of 33.80 to 67.83 from 61.51 at 74.50 as next target, as WTI rises through 70 handle.
