US commercial crude oil inventories dropped -8m barrels in the week ending October 30, versus expectation of 0.3m barrels rise. At 484.4m barrels, oil inventories are about 7% above the five year average of this time of year. Gasoline inventories rose 1.5m barrels. Distillate dropped -1.6m barrels. Propane/propylene dropped -2.6m barrels. Commercial petroleum inventories dropped -14.7m barrels.
WTI rebounded strongly after drawing support from 34.10/36 support zone, despite breaching to 33.50. For now near term outlook will stay neutral first. WTI needs to sustain above 55 day EMA (now at 39.28) to provide the first sign of uptrend resumption. Nevertheless, even in case of another fall, we’d continue to expect strong support from 33.50 to contain downside.
