US commercial crude oil inventories dropped -2.1m barrels in the week ending November 12, versus expectation of 1m rise. At 433.0m barrels, oil inventories are about -7% below the five year average for this time of year.
Gasoline inventories dropped -0.7m barrels. Distillate inventories dropped -0.8m barrels. Propane/propylene dropped -0.2m barrels. Total commercial petroleum inventories dropped -8.9m barrels.
WTI crude oil has little reaction to the data. It’s still extending the consolidation pattern from 85.92 short term top. For now, we’d continue to expect strong support from 78.54 to contain downside to bring rebound. This level is slightly above 55 day EMA at 78.47.
Medium term up trend should resume sooner or later and the real test is from 61.8% projection of 33.50 to 77.16 from 61.90 at 88.88. However, firm break of 78.54 will turn near term outlook bearish for deeper pull back into 61.90/77.16 support zone.
