US commercial crude oil inventories rose 1.2m barrels in the week ending January 3, versus expectation of -3.4m barrels decline. At 431.1 million barrels, U.S. crude oil inventories are at the five year average for this time of year.
WTI crude oil spiked higher to 65.38 after Iran’s strikes against US led forces in Iraq. But WTI quickly pared gains after the strikes caused no American casualties, thus risking less further escalations. WTI turns further softer after oil inventory release. Focus in now back on 60.46 support.
Purely technically, we’d continue to expect strong resistance from 63.04/66.49 to limit upside to complete the rise from 50.86. Break of 60.46 should confirm short term topping and bring deeper fall to 55 day EMA (now at 58.81) first.
