US crude oil inventories show a larger than expected drawdown of -12.157M vs -0.680M est.

The weekly EIA oil inventory data shows :

• Crude stocks down 12.157 million barrels to 448.54 million, vs forecast of 0.7 million barrel draw
• Gasoline stocks down 2.214 million barrels to 231.67 million, vs forecast of 1.3 million barrel draw
• Distillate stocks down 1.535 million barrels to 119.73 million, vs forecast of 1.2 million barrel draw
• Cushing up 345,000 barrels to 34.24 million. Last week -0.226M
• Heating oil stocks down 572,000 barrels to 7.14 million
• Net crude imports down 555,000 barrels per day to 2.15 million barrels per day
• Ethanol output up 21,000 barrels per day to 1.06 million barrels per day
• Crude exports up 491,000 barrels per day to 4.4 million barrels per day
• Ethanol stocks up 171,000 barrels to 23.59 million

The price of crude.oil has moved higher after the report and currently trades at $83.21 up $0.40 or 0.50%. It is still lower than the high price reached yesterday at $84.38. That level was eight cents short of the April 26 high of $84.46 (the next upside target).

This week the price has moved above the 61.8% retracement of the move down from the April high to the June low at $81.84. Staying above that level keeps the buyers in more control.

This article was written by Greg Michalowski at www.forexlive.com.