US commercial crude oil inventories dropped -2m barrels in the week ending September 25. At 492.4m barrels, oil inventories are about 13% above the give year average for this time of year. Gasoline inventories rose 0.7m barrels. Distillate dropped -3.2m barrels. Propane/propylene rose 4.1m barrels. Commercial petroleum dropped -0.6m barrels.
WTI rebounds notably in early US session, more helped by surge in overall risk sentiment than the inventory data. Current development suggest that fall from 41.43 is merely a three wave corrective move. And rebound from 35.98 is possibly ready to resume. Break of 40.62 resistance would likely send WTI through 41.43.
However, we’d maintain the view that such rise from 35.98 is only the second leg of the medium term consolidation pattern from 43.50. Hence, we wouldn’t expect a firm break of 43.50 even in case of strong rally. Instead, range trading should continue.
