Demand supply equation throbbing intermediary WTI crude bull sentiments yet again

In the history, as per our forecasts, we all have seen last month that WTI crude oil futures (CL!1) extended its loses from previous month's highs at around 59 levels to 47.44 in first stage and again below 42.22 levels (our 2nd target) and even upto 37.75 levels when we advocated shorting futures. Currently, we observed on NYME, WTI crude oil futures for October delivery has again struggled to hold yesterday's highs of 47.10 due to the spike in U.S. crude inventories.

Brent has risen to $49 per barrel and WTI to just shy of $46 per barrel. Russia's military intervention in the Syrian conflict has increased the geopolitical risks, which is giving tailwind to the prices. According to the US Department of Energy, US crude oil stocks grew by 4 million barrels last week. Crude oil stocks at Cushing, on the other hand, fell by 1 million barrels. Both figures corresponded largely to the data reported by the API the day before.

The inventory build was due to a combination of lower crude oil processing and higher imports. Contrary to the usual seasonal pattern, US gasoline stocks rose by an unexpectedly steep 3.2 million barrels. US crude oil production declined for the seventh time in the past eight weeks and now finds itself at its lowest level since the end of November 2014. It now exceeds the year-on-year figure by only 259,000 barrels per day.