US commercial crude oil inventories dropped -8.5m barrels in the week ending July 26, more than expectation of -2.5m barrels. At 436.5m barrels, crude oil inventories are at the five year average for this time of year.
WTI crude oil’s recovery from 54.79 extends slightly higher after the release. But upside momentum is not too convincing for now. Price actions from 60.93 are still seen as correcting the rise from 50.64. Such consolidation could extend further for a while. Therefore, we don’t expect a break of 60.93 in case of further rally. Instead, another fall through 54.79 is mildly in favor at a later stage when the correcting extends.
