US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve), rose 3.1m barrels in the week ending September 27. That’s notably above expectation of 2.0m barrels. At 422.6m barrels, U.S. crude oil inventories are at the five year average for this time of year.
WTI crude drops to as low as 52.47 so far as fall from 63.04 extends. Deeper decline is expected as long as 56.63 resistance holds, to 50.43 support next. However, that would be close to 61.8% retracement of 42.05 to 66.49 at 51.38, as well as 50 psychological level. For now, we’re not expecting a break there.
