US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 9.3m barrels in the week ending October 11, much higher than expectation of 2.7m barrels. At 434.9m barrels, crude oil inventories are about 2% above the five year average for this time of year.
WTI crude oil remains in tight range after the release, showing little reactions. Outlook is unchanged that further decline cannot be ruled out. But we’d expect strong support form around 50 psychological level to contain downside. This level is also close to 61.8% retracement of 42.05 to 66.49 at 51.38. On the upside, break of 54.71 will target 63.04 resistance.
