US commercial crude oil inventories dropped sharply by -10.8m barrels in the week ending July 19, much larger than expectation of -4.2m barrels. At 445.0m barrels, crude oil inventories are about 2% above the five year average for this time of year. Full release here. WTI oil strengthens just mildly after release.
WTI’s fall to 54.79 was deeper than expected and broke 56.05 support. For now price actions from 60.93 are seen as correcting the rise from 50.64 to 60.69. Such correction should extend further for a while. Hence, current recovery from 54.79 should be limited below 60.93. Another fall through 54.79 is in favor but should be contained well above 50.64 low.
