US commercial crude oil inventories dropped -4.7m barrels in the week ending August 21, larger than expectation of -3.4m barrels. At 507.8m barrels, oil inventories are about 15% above the five year average for this time of the year. Motor gasoline dropped -4.6m barrels. Distillate rose 1.4m barrels. Propane/propylene rose 1.5m barrels. Commercial petroleum dropped -7.8m barrels.
WTI breaches 43.38 near term top after the release but there is no clear follow through buying yet. 4 hour MACD’s break of the trend line resistance is a sign of positive development. But we’d emphasize that it’s now close to 55 week EMA at 43.92. We won’t be too bullish for now unless this EMA is taken out decisively.
