US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) dropped -4.9m barrels in the week ending November 29, larger than expectation of -1.6m barrels decline. At 447.1m barrels, U.S. crude oil inventories are about 3% above the five year average for this time of year.
WTI crude oil’s choppy rise from 50.86 is still in progress. With 54.77 support defended, WTI could still spiral higher. However, upside momentum is not convincing as seen in daily MACD. The structure of the rise is also clearly corrective, thus, strong resistance should be seen below 63.04 to bring reversal to extend medium term sideway trading. on the downside, firm break of 54.77 support would target 50.86 support instead.
