US crude oil inventories rose 2.0m barrels in the week ending September 4, versus expectation of -3.1m barrels fall. At 500.4m barrels, US crude oil inventories are around 14% above the five year average for this time of the year. Gasoline inventories dropped -3.0m barrels. Distillate dropped -1.7m barrels. Propane/propylene rose 2.2m barrels. Total commercial petroleum inventories dropped -3.4m barrels.
WTI is steady after the release, digesting the steep losses from 43.50. It’s now in a consolidation to rally from March spike low, after being rejected by 55 week EMA. For now, we’d expect a sideway consolidation phase. That is, while further decline is in favor , we’re not expecting a decisive break of 34.36 support, barring any drastic development. On the upside, a break above 40 handle could bring a test on 43.5. But in that case, we’re not expecting a decisive break there, at least not on the next attempt.
