US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 0.8m barrels in the week ending December 6, above expectation of -2.9m barrels decline. At 447.9m barrels, crude oil inventories are about 4% above the five year average for this time of year.
WTI crude oil dips mildly after the release. But it’s firstly trying to draw support from 4 hour 55 MEA. Secondly, it’s staying well inside near term rising channel. Overall outlook is unchanged. Choppy corrective rise from 50.86 is still in progress. Further rally is in favor but upside strong resistance should be seen below 63.04 to bring reversal to extend medium term sideway trading. On the downside, firm break of 54.98 support would target 50.86 support instead.