Is it Worth Selling Crude Oil Ahead of EIA Report? Let’s Find Out

A day before, the American Petroleum Institute (API) reported a slight rise in the US crude oil inventories by 3 million barrels.

The Energy Information Administration (EIA) is due to release a weekly report on the crude oil inventories. By the way, it’s a more closely watched data than API report. During the previous week, the API announced a surprise build in crude oil of 1.93 million barrels. A day later, the EIA reinforced the build, predicting that oil inventories had increased by 2.8 million barrels.

Recalling FX Leaders April 3 – Economic Events Outlook, the EIA is due to release the inventories data at 14:30 (GMT). For beginners, typically there’s a positive correlation between EIA and API reports.
The EIA figures are expected to show a slight draw of -0.7M vs. 2.8M beforehand. But you should be ready to capture a build in inventories as API reported.

WTI Crude Oil – Trading Plan
Crude Oil is trading in the overbought zone after a series of fundamentals. However, the doji candle on 4-hour timeframe can trigger a sell-off in crude oil today.

I’m looking to stay bearish below $62.70 with a stop loss above $67.85 and take profit around $62.

Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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