US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.4m barrels in the week ending August 2. At 438.9m barrels, U.S. crude oil inventories are about 2% above the five year average for this time of year. WTI drops sharply after the release and is now eyeing 50.64 support.
The steep decline this week now argues that decline from 60.93 is part of the whole move from 66.49. Firm break of 50.64 will target 100% projection of 66.49 to 50.64 from 60.93 at 45.08. For now, risk will stay on the downside as long as 54.79 minor resistance holds, in case of recovery.
