US commercial crude oil inventories dropped -3.5m barrels in the week ending April 2, versus expectation of -2.0m. At 498.3m barrels, oil inventories are about 3% above the five year average for this time of year. Gasoline inventories rose 4.0m barrels. Distillate inventories rose 1.5m barrels. Propane/propylene inventories rose 0.3m barrels. Total commercial petroleum inventories rose 2.3m barrels.
WTI is staying in sideway pattern from 57.31 and outlook is unchanged. With 62.22 resistance intact, the correction from 67.83 could still extend lower. Break of 57.31 will target 38.2% retracement of 33.50 to 67.83 at 54.71. We’d expect strong support from there to bring rebound. On the upside, break of 62.22 will argue that the correction has completed and bring retest of 67.83. high.
